Top Cryptos Show slight Gains Ahead of FOMC Decision
bitcoin, Ethereum, adn XRP saw minor gains on Wednesday as traders prepare for the U.S. FOMC rate decision at 2 PM ET. This time, bear markets seem shorter, followed by rapid price recoveries.
The upcoming FOMC meeting could bring higher volatility to these top cryptos. It may offer buying opportunities or chances to take profits during the ongoing bear market.
Traders of Bitcoin, Ethereum, and XRP have become more cautious. In the past 24 hours, their activity in the derivatives market has dropped. Coinglass data shows a decline in trade volume: BTC and ETH by nearly 11% and 7%, and XRP by almost 14%.
Coinglass also reports nearly $89 million in liquidations in these top cryptos over the past day. This indicates a risk-averse stance among traders.
However, the combined value of open contracts for BTC, ETH, and XRP has risen by 1.42%, 4.90%, and 1.49%,respectively. This suggests some optimism.
On-chain analysis by Santiment shows mixed signals. Bitcoin’s binance funding rate has been positive for three days, hinting at a price rise. Ethereum’s whale supply remains stable, while Bitcoin’s supply held by funds has decreased. XRP’s active addresses have increased.
These on-chain data points suggest a slightly bullish outlook for Bitcoin and XRP, while Ethereum may stay stable. the FOMC decision could bring volatility.
Bitget CEO Gracy Chen believes Trump’s pro-crypto stance is confusing traders. The idea of a U.S. strategic Bitcoin reserve is gaining ground. Chen predicts Bitcoin won’t fall below $70,000 and could reach $200,000 in 1-2 years.
FOMC Meeting and Crypto Market Impact
The upcoming FOMC meeting on March 19,2025,is expected to keep the federal funds rate steady at 4.25%-4.50%. The Fed will likely adopt a cautious approach due to ongoing inflation and economic growth. Ryan Lee, Chief Analyst at Bitget Research, shared insights with Crypto.news.
Lee predicts that the crypto market may experience short-term volatility. A fed signal for future rate cuts could boost risk appetite, leading to a rally. Conversely, a hawkish stance might cause a dip. Though, Bitcoin’s growing resilience and pro-crypto policies could mitigate broader market effects.
Volatility is highly likely around the announcement, influenced by fed Chair Powell’s remarks and updated rate projections. Post-FOMC, Bitcoin is expected to trade between $80,000–$86,000, while Ethereum is projected to move between $1,800–$2,100.
Bitcoin and Ethereum Price Trends
Bitcoin is showing signs of recovery, trading at $83,517. Technical indicators like RSI and MACD suggest positive momentum. Ethereum gained 2.39% and could retest the $2,000 level, aiming for $2,100.
Two key indicators, RSI and MACD, support ethereum’s price recovery. Though, a Bitcoin flashcrash could push Ethereum down to $1,754.
XRP Price Forecast
XRP could rally nearly 7% and test resistance at $0.2707. RSI and MACD indicate bullish momentum. Traders await developments in the US financial regulator’s lawsuit against Ripple and XRP’s inclusion in the Strategic Reserve.
These events, along with the FOMC rate decision, could impact XRP’s short-term price. Stay tuned for updates.
