Bitcoin and altcoins have been experiencing a strong recovery in recent days. Although BTC rose above $76,000, it couldn’t maintain that level and subsequently fell back to around $74,000.
While Bitcoin continues to experience volatile movements, analysts believe that today’s PPI data and Federal Reserve Chairman Jerome Powell’s statements are of critical importance for BTC.
At this point, Bitfinex analysts assessed the impact of PPI data and the FED decision on Bitcoin and cryptocurrencies.
According to Bitfinex analysts, high PPI inflation data and Powell’s hawkish statements would be the most damaging combination for risky assets, including cryptocurrencies.
A hawkish tone and high PPI inflation data could put pressure on stocks and cryptocurrencies, but Powell’s moderate statements, with the Fed viewing rising oil prices as a temporary shock, could keep the cryptocurrency rally going.
The Federal Reserve is widely expected to keep interest rates stable at 3.50%-3.75% in March, as it did in January. This is priced at 98.9% on FedWachToll. This is because the halt in oil shipments through the Strait of Hormuz due to the US-Iran war has caused energy prices to rise and, consequently, the risk of inflation to resurface.
For these reasons, today’s focus has shifted to Powell’s messages and the expectations of Fed members regarding interest rates.
Bitfinex analysts stated, “The key question for the current situation will be whether policymakers signal a rate cut in 2026 or whether they are open to the idea of further monetary easing, and Powell’s comments regarding the recent rise in oil prices. A more hawkish outcome from the meeting could strengthen the dollar and put pressure on risky assets like Bitcoin.”
Analysts also offered an assessment of the Bitcoin price, stating that price movements are likely to remain stagnant for now: “We expect the Bitcoin price to temporarily remain in the $74,000-$76,000 region.”
*This is not investment advice.
