Bitcoin, the world’s largest cryptocurrency, continued its decline on Monday, hitting $83,191 after a week of consecutive losses. Amid the volatile market, all eyes are now on the upcoming interest rate decision by the U.S. Federal Reserve (Fed).

🏦 Will the Fed Hold Interest Rates Steady?

The fed’s monetary policy meeting on March 18-19 will assess February’s economic data. According to the CME Group’s FedWatch tool, there is a 98% probability that the Fed will maintain interest rates, as it did in January.

Bitcoin, as the leading asset in the crypto market, could react sharply to this decision. If rates remain unchanged, short-term stability may follow. However, any unexpected move by the Fed could drive Bitcoin lower.

📊 Key Bitcoin Levels to Watch

• Above $81,000: If Bitcoin remains above this level by the end of the week, it could signal strength.
• Below $76,000: A drop below this level may trigger stronger selling pressure.
• Above $85,000-$90,000: Closing within this range could restore market confidence and ignite a new price rally.

💵 Impact of the U.S. Dollar on Bitcoin

The U.S. Dollar Index (DXY) has weakened recently, which often benefits risk assets like cryptocurrencies. When the dollar weakens, investors tend to seek alternative assets, with Bitcoin being a popular choice.

💰 Global Liquidity and the Fed’s Role

Beyond interest rates, global liquidity is also a crucial factor for the crypto market. Central banks worldwide, including the Fed, have expanded their money supply to support their economies. When liquidity increases, asset prices like stocks, real estate, and cryptocurrencies tend to rise.

If the Fed signals the end of its tightening cycle, the crypto market could react positively, anticipating new inflows of capital.

📉 Ethereum and Altcoins Under Pressure

Ethereum (ETH) is also facing difficulties, with a 9% decline over the past week. Currently, ETH is struggling to maintain its support at $1,900 while aiming to reclaim the $2,000 mark.

A concerning factor is Ethereum’s declining activity. The number of daily active users has dropped from over 700,000 at the beginning of the year to only 293,000.

Leading altcoins like Solana (SOL), XRP, Cardano (ADA), and Tron (TRX) are also facing significant selling pressure. Many experts believe that if the Fed cuts interest rates in the future, the crypto market could experience a strong recovery.

🚀 Will Bitcoin Rebound or Continue to Decline?

In the short term, everything depends on the Fed’s decision and market sentiment. If rates remain unchanged and the dollar continues to weaken, Bitcoin could stabilize or even recover. However, any negative signals from the Fed could break the $76,000 support level, leading to a sharper correction.

Keep a close watch on the market in the coming days to see where Bitcoin heads next!

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