Fed Interest Rate Decision to Hold Rates at 4.25%-4.5% as Bitcoin Tests Key Levels — Will BTC Break Resistance?

Pointing to economic uncertainty and ongoing inflation worries, the Federal Reserve has chosen to leave interest rates at 4.25%-4.5% the same. Lowering its GDP growth forecast for 2025 as well, from 2.1% to 1.7%, the central bank also recalibrated. Meanwhile, rising inflation expectations of 2.7% from 2.5% show continuous price pressure. Chair Jerome Powell of the Fed recognized difficulties in striking a balance between keeping inflation in check and ensuring financial stability; therefore, he adopted a prudent attitude going ahead. Investors are keenly watching how these projections affect shares, bonds, and cryptocurrency markets over the next few months as markets react.

Fed Interest Rate Decision and Economic Impact

Against increased worries regarding economic slowdown and inflationary pressures, the Fed interest rate decision remains in line. With GDP growth now forecast at 1.7%, down from 2.1%, legislators expect more slow economic expansion. Furthermore, expectations of an inflation forecast have grown to 2.7%, which shows that price levels continue to be an issue. Reflecting a change in monetary tightening policy, the central bank also intends to slow down the pace of its balance sheet reduction starting April 1. Ongoing geopolitical risks and trade policies, Powell argued, would be the main elements determining future interest rate decisions.

The news sparked varied responses from the markets. Bitcoin fell 2.3% to $ 82,750 before rebounding, so the cryptocurrency sector also experienced a small dip. Usually, higher interest rates depress risk assets; however, the Fed interest rate decision to keep rates stable instead of raising them caused some easing. Whether the economy can avoid a more severe slowdown will depend much on the next few months. Let’s take a look at the  Bitcoin chart to see how Bitcoin Price Prediction reacted to it.

Bitcoin Price Prediction

After a steep rise, Bitcoin (BTC) is trading at $85,972 and settling inside a range. Before retracing, the price recently tried resistance not far from $87,200. One more breakout attempt toward $87,600 is feasible if BTC holds over this support. But a fall toward $84,200 in the near future would be started by the inability to keep this level. Bitcoin showed bullish momentum before the Fed meeting; this shows the resilience of crypto over time and also shows the conviction in Bitcoin.

Chart 1: Analysed by vallijat007, published on TradingView, March 20, 2025

At 60, the RSI reflects moderate bullish momentum but approaches overbought levels. Recently, the MACD created a Death Cross, which could mean a possible slowdown. BTC might, however, pick up pace if the MACD histogram turns positive. For further upside verification or a possible bearish continuation, traders ought to look for a break over $86,300 or a breakout below $85,400.

Fed Interest Rate Decision and Bitcoin Consolidation

Ongoing economic instability is implied by the Federal Reserve’s decision to keep interest levels stable over time. Investors are still wary as the central bank balances economic stability with inflation forecast control. After a turbulent day, Bitcoin is sitting around $85,972 in line with market reactions. Its next movement will be decided by major resistance at $87,200 and support at $85,400. Risk assets, including cryptocurrencies, will continue to be sensitive to additional changes in Federal Reserve policy as macroeconomic circumstances develop.