Fed’s Interest Rate Decision Trigger Bitcoin Market Crash, Slashing BTC to $81,000

On March 19, the Federal Reserve’s Federal Open Market Committee (FOMC) will make its most anticipated interest rate decision today. This decision will have a major impact on financial markets including BTC.  Investors are closely watching whether the Fed maintains its current rates or signals potential cuts. A higher-for-longer interest rate policy may reduce liquidity resulting in a Bitcoin market crash. Conversely, a dovish approach might help altcoins like BTC.

FOMC Expected Interest Rate

The FOMC meeting is crucial due to the Federal Reserve’s decision on interest rates currently at 4.25% to 4.5%.  Analysts expect interest rates to remain firm with signs of future cuts. A higher-for-longer stance may increase market crash risks, while dovish signals could boost Bitcoin price prediction and overall crypto market sentiment.

Impact on Cryptocurrency Market

The uncertainty surrounding the interest rate decision has already created volatility. BTC has seen price fluctuations as traders brace for the outcome. If the Fed signals prolonged high rates, the crypto market may experience downward pressure, potentially leading to a Bitcoin market crash. However, a dovish stance could reignite risk appetite, pushing BTC toward higher levels. As the FOMC decision approaches, Bitcoin remains uncertain. Investors should prepare for heightened volatility based on the Fed’s stance with the crypto market reacting sharply to any policy shifts.

Bitcoin Price Prediction of March 19

The trading session on March 18 commenced with bearish pressure, as a death cross on the MACD signaled a downward channel. An oversold RSI at 1:20 UTC drove prices lower, while another oversold condition at 6:40 UTC led buyers to establish support at $82,242.50. Despite a minor upward push at 7:00 UTC, a subsequent death cross at 9:10 UTC reinforced bearish momentum, initiating a downward trend. At 12:55 UTC, another death cross resulted in a breakdown below support. Prolonged oversold conditions on the RSI between 13:30 UTC and 14:50 UTC confirmed the decline, with BTC establishing a new support level at $81,137.37. 

Chart 1, Analyzed by ShwetaCW, published on TradingView, March 19, 2025

As illustrated in Chart 1, a shift in momentum occurred at 14:25 UTC as a golden cross triggered a bullish recovery. The price climbed steadily, encountering overbought conditions at 23:20 UTC before entering March 19. As the session progressed, BTC reached resistance at $83,280.33. A death cross at 1:00 UTC signaled renewed bearish sentiment, leading to a downward fluctuation. Bitcoin price prediction suggests that if bearish pressure persists, BTC may break $81,137.37 support. Conversely, a bullish reversal could propel prices past $83,280.33, potentially testing the $84,000 range.

Bitcoin’s Next Move

The Federal Reserve’s interest rate decision remains the focal point for financial markets, with investors closely monitoring its impact. A bullish stance could tighten liquidity, raising Bitcoin market crash concerns, while a dovish tone might boost investor sentiment. BTC has faced bearish pressure struggling below resistance at $83,280.33 while holding support at $81,137.37. If selling pressure intensifies BTC could breach support, leading to further declines. However, if buyers regain control it may attempt to break resistance and move toward $84,000. Bitcoin price action suggests heightened volatility ahead as the market reacts to the FOMC decision and broader macroeconomic factors.