Here’s a breakdown of the crypto market from last week:
Strong Start for Bitcoin, But Fed Happened
Bitcoin started the week strong, climbing as high as $75,800 on Tuesday, March 17th, before Wednesday happened.
What happened on Wednesday?
On March 18th, the Federal Reserve (Fed), the central bank controlling the US financial system, held interest rates steady at 3.5% to 3.75% for the second consecutive meeting. The hold itself was not a surprise. What rattled markets was what Powell said afterwards.
At his press conference, Powell told reporters that the Fed was “not making as much progress on inflation as we had hoped.” He said rising oil prices from the Iran war “for sure showed up” in their projections, pushing their 2026 inflation forecast up from 2.4% to 2.7%. And when asked about rate cuts, he was blunt: “If we don’t see progress on inflation, you won’t see that rate cut.”
Bitcoin dropped roughly 5% within hours of those remarks, falling from above $74,000 to around $70,500. Over $158 million in leveraged bets were wiped out in four hours. Ethereum fell too. The broader crypto market dipped below $2.5 trillion in total value. It wasn’t panic — but it was a clear reminder that when the Fed speaks, crypto listens.
Here’s the bigger picture, though: Bitcoin has now dropped after eight of its last nine Fed meetings. It’s a pattern. Traders buy in anticipation of the meeting, then sell once it passes, regardless of what actually happens. The good news? That post-Fed dip has historically been one of the better entry points for patient buyers.
As of the time of writing, Bitcoin is hovering around $70,700. In other words, the world’s largest cryptocurrency is currently bruised but holding on.
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