Bitcoin & Altcoin Volatility Tied to Fed Rate Decision

Bitcoin, Ethereum, and Dogecoin are all showing heightened volatility this week as traders brace for the Federal Reserve’s interest rate decision. The market is tense, and price swings reflect growing uncertainty around whether Fed Chair Jerome Powell will maintain a hawkish stance or hint at possible rate cuts later this year.

As of March 17, 2025, Bitcoin (BTC) is trading at approximately $83,376, reflecting a slight decrease of 0.91% from the previous close. The intraday high has reached $84,692 and the low sits around $82,019. This price action highlights ongoing market tension ahead of the FOMC announcement.

Bitcoin and Ethereum: Riding the Waves of Uncertainty

Bitcoin slipped earlier in the week but has since rebounded, though sentiment remains cautious. Traders are watching key resistance levels closely, with some analysts pointing to an 8% upside for BTC if it breaks out of its current range.

Ethereum is following Bitcoin’s lead, though some market participants are noting slightly more bullish undertones due to ongoing whale accumulation — a trend that could indicate longer-term optimism among larger investors.

Dogecoin and Altcoins: Feeling the Pressure

Dogecoin and other altcoins are not immune to the volatility. While not moving as sharply as BTC or ETH, altcoins remain vulnerable to sudden swings tied to broader risk sentiment. Any major surprise from the Fed could either lift or drag the entire altcoin market depending on Powell’s tone.

Our Take: What to Watch Next

This choppy price action across Bitcoin and altcoins reflects a market trying to front-run the Fed decision — and highlights the growing uncertainty about what direction Powell may take.

Here’s how we see it:

If Powell hints at dovishness, expect a sharp rebound across Bitcoin, Ethereum, and risk-on assets.
If the Fed stays firmly hawkish, we anticipate a near-term pullback, especially in altcoins, followed by possible accumulation phases if traders see buying opportunities.

Final Thought

For now, the Fed is the driver, and until clarity emerges from this week’s meeting, expect continued volatility. Traders should remain nimble and be prepared for swift market moves depending on how the Fed frames its path forward.