All Eyes on U.S Fed as Uncertainty Clouds Crypto’s Next Move
Minutes from the March meeting of the Federal Open Market Committee (FOMC) show that members of the US Federal Reserve were divided on whether the conflict in the Middle East may influence more interest rate reduction before 2026 ends.
Federal Open Market Committee (FOMC) meeting minutes from March 17 and 18 were issued on Wednesday by the Fed. After much deliberation, the committee decided to hold interest rates between 3.5% and 3.75 percent, with 11 votes in favor and one against. Many officials were worried about the effects of war on the economy. The Bureau of Labor Statistics releases the March CPI two days after that.
All Eyes on Upcoming Meeting
These two announcements, when combined, provide the most comprehensive picture of the Fed’s inflation strategy to date. The data points are more significant than usual because of the impending FOMC meeting on April 28–29 and the impending big leadership change at the Fed.
Inflation must not spiral out of control before the Federal Reserve considers a rate drop this year, as stated in the minutes, amid concerns about the likelihood of more disagreements.
As a whole, rate cuts are seen as a boon for the crypto sector since they increase demand for speculative investments and free up capital for investments. The Federal Reserve last reduced interest rates by 25 basis points on December 10, 2025, resulting in significant upswing for the crypto market.
It was decided during the FOMC meeting that it was too early to tell how events in the Middle East will impact the U.S. economy, even if a reduction is still possible for this year.
As investors await the outcome of the tenuous truce between the US and Iran, Bitcoin and other cryptocurrencies saw a slight decline in trade volume early Thursday. In reaction to Israeli attacks on Lebanon, Iran vowed to keep the Strait of Hormuz closed, causing the biggest cryptocurrency to lose some of the gains it made on Wednesday when a ceasefire was announced.
According to several analysts, Bitcoin might retest the $69,000–$70,000 level before it can start moving upward again. If the cease-fire is not maintained, we may likely see a decline to $66,000 in the event that hostilities persist. At the time of writing, Bitcoin is trading at $71,379, down 0.24% in the last 24 hours as per data from CMC.