Colin Wu named the key factor that will affect the value of bitcoin

Colin Wu, a well-known Chinese crypto journalist and blogger who often shares his insider’s view of the cryptocurrency space on X/Twitter, reminded the community that the FOMC meeting is scheduled for later this week. During this event, the US Federal Reserve will make a fundamental statement that is likely to affect the future movement of the bitcoin price.

According to a tweet published by the aforementioned insider, during the FOMC meeting scheduled for March 20, US Federal Reserve Chairman Jerome Powell will announce the Fed’s interest rate decision. The data published on the CME platform suggests that the Fed will leave the interest rate unchanged, with a 99% probability of such a decision.

The Fed’s interest rate has a significant impact on financial markets, including the cryptocurrency market. In anticipation of the first rate announcement this year, the cryptocurrency community’s concerns about the future behavior of the BTC $56,416.10 Bitcoin -1.81% Market capitalization $1.11 trillion VOL. 24 hours $4.33 billion price are growing.

Over the past few years, the US Federal Reserve has been tightening the discount rate in an effort to curb rising inflation. However, last year, Jerome Powell began to hint that it was time to start easing interest rates. Traditionally, the Fed’s tightening monetary policy has a negative impact on the prices of risky assets, including bitcoin, and a rate cut encourages the inflow of funds into bitcoin, which leads to an increase in price.