For Bitcoin to steer clear of further volatility, it must secure a close above the significant $81,000 weekly mark ahead of next week’s Federal Open Market Committee (FOMC) meeting, which will provide investors with insights into the Federal Reserve’s monetary policy outlook for 2025.
The price of Bitcoin (BTC) has decreased by over 3% in the past week, currently trading around $83,748 as of 9:33 a.m. UTC, according to recent market data.
The continued risk of considerable downside for Bitcoin is attributed to increasing macroeconomic uncertainty, particularly regarding global trade tariffs, as noted by an analyst from a crypto research firm.
BTC/USD, 1-year chart.
The analyst emphasized that closing the week above the $81,000 threshold is crucial to avoid further declines in Bitcoin’s value, remarking:
“The pivotal level for the week’s closing is in the $81,000 range; staying above it would indicate resilience, but a drop below $76,000 could lead to increased short-term selling pressure.”
This commentary comes ahead of the upcoming FOMC meeting set for March 19. Current market forecasts suggest a 98% likelihood that the Federal Reserve will maintain steady interest rates, according to the latest estimates.
Market analysis data.
The outcome of the FOMC meeting could greatly influence investor sentiment toward Bitcoin, the analyst added:
“While the market anticipates the Fed will keep rates stable, any unexpected hawkish signals could exert pressure on Bitcoin and other risk assets.”
“Conversely, even a more dovish surprise, such as a rate cut, might not provide the immediate uplift some are looking for, given the prevailing macro uncertainties,” the analyst further explained.
Closing above $85k might boost investor optimism: analyst
Other market experts are identifying potential positives in Bitcoin’s current price stagnation.
A weekly close above $85,000 could enhance investor confidence and catalyze the next upward movement, according to a market analyst from a real-world asset tokenization platform.
This analyst stated:
“Both traders and investors are closely monitoring $80,000 for support, as well as the $85,000–$90,000 resistance range, with a breakout beyond the latter possibly initiating a strong rally.”
While short-term momentum for Bitcoin might encounter challenges due to upcoming economic reports, regulatory developments concerning Bitcoin reserve plans could foster a greater sense of optimism and encourage broader adoption, the analyst added.
On March 14, a proposed bill introduced by US Representative Byron Donalds aims to solidify the Bitcoin reserve, making it a permanent institution and safeguarding it from future administrative changes.
If successful, this legislation would ensure that the Strategic Bitcoin Reserve and US Digital Asset Stockpile cannot be dismantled by executive actions from succeeding administrations.
The bill requires at least 60 votes from the Senate and a majority from the House to pass. With the Republicans currently holding a majority in the Senate—combined with an increasingly crypto-friendly climate—the bill stands a good chance of approval.
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Magazine: Insights on Bitcoin trends, SEC delays on Ether ETFs, and more: Digest for the week of Feb. 23 – March 1