Btc

Trump "policy fog" + Powell dilemma, the market holds its breath

Beijing time on March 20 at midnight, the Federal Reserve will announce its interest rate decision, followed by a press conference from Powell, which is highly anticipated by global markets. This meeting will assess the impact of Trump’s new policies on the US economy and discuss inflation control and monetary policy adjustments.

The market is under pressure, Bitcoin has retreated, dropping to $83,215, a 1.5% decline over 24 hours, with mainstream coins like Solana and Ethereum experiencing even larger declines. The US stock markets, including the Nasdaq and S&P 500 indices, have also fallen. The market is concerned that the Federal Reserve will not cut interest rates for now, despite a slight slowdown in inflation in February.

It is estimated that the Federal Reserve will remain on hold, with the dot plot becoming the focus. The market expects interest rates to remain between 4.25% and 4.50%, with a low probability of rate cuts. The uncertainty surrounding Trump’s policies prompts the Federal Reserve to adopt a wait-and-see approach, and the “dot plot” will reveal the future path of interest rates, with any adjustments potentially causing volatility.

The crypto market is affected, with assets like Bitcoin being suppressed by high interest rates, hovering around $83,000, and market sentiment is “fearful.”

Summary
Powell's statement will set the tone for the market, dovish signals may prompt a rebound, while a hawkish stance could exacerbate declines. Investors need to remain vigilant and closely monitor the results.