Bitcoin and altcoins have seen a strong recovery in recent days. Although $BTC exceeded $76,000, it was unable to maintain this level and later fell back to around $74,000.
As Bitcoin continues to experience volatile movements, analysts believe that current PPI data and statements from Federal Reserve Chairman Jerome Powell are of crucial importance for $BTC.
At this point, Bitfinex analysts have assessed the impact of the PPI data and the FED decision on Bitcoin and cryptocurrencies.
According to Bitfinex analysts, high PPI inflation data and Powell’s hawkish statements would be the most damaging combination for risky assets, including cryptocurrencies.
A hawkish tone and high PPI inflation data could put pressure on stocks and cryptocurrencies, but Powell’s subdued statements, with the Fed viewing rising oil prices as a temporary shock, could keep the crypto rally going.
The Federal Reserve is widely expected to keep interest rates steady between 3.50% and 3.75% in March, as it did in January. The price is 98.9% off on FedWachToll. Indeed, the cessation of oil shipments through the Strait of Hormuz due to the war between the United States and Iran has caused a rise in energy prices and, consequently, a re-emergence of the risk of inflation.
For these reasons, the focus today has shifted to Powell’s messages and Fed members’ expectations regarding interest rates.
Bitfinex analysts said: “The key question in the current situation will be whether policymakers signal a rate cut in 2026 or are open to the idea of further monetary easing, and Powell’s comments regarding the recent rise in oil prices. A more hawkish outcome from the meeting could strengthen the dollar and put pressure on risky assets like Bitcoin.”
The analysts also offered an assessment of the Bitcoin price, stating that the price movements are expected to remain stagnant for the time being: “We expect the Bitcoin price to temporarily remain in the $74,000-$76,000 region. »
*This does not constitute investment advice.