Everyone is paying attention to the Fed's Dot Plot chart
Managing currency with the Dot Plot chart
The U.S. Federal Reserve (Fed) is expected to keep interest rates unchanged in the range of 4.25%–4.50%. The official decision will be announced on Wednesday at 2 PM EDT, followed by a press conference by Chairman Jerome Powell. However, this part has already been somewhat priced in by the market. In fact, investors are paying special attention to the Dot Plot chart – a chart that describes each Fed member's interest rate predictions in the coming months and further into the year.
The impact of the Dot Plot predictions on the cryptocurrency market
If the chart shows fewer interest rate cuts than expected, this will reinforce the narrative of 'maintaining higher rates for longer', pushing the USD up and creating downward pressure on Bitcoin and other risk assets. Conversely, a significant expected reduction in interest rates could push Bitcoin beyond the $112,000 threshold. Even without major volatility, traders are still preparing for strong fluctuations that may occur based on signals from the Fed.
Why are cryptocurrency traders interested?
Market sentiment analysis after the Fed's predictions
The price of Bitcoin has cooled significantly after exceeding the $100,000 peak. A prediction of a tougher interest rate from the Fed could make the market more cautious, prolonging the accumulation process. Many analysts like Matteo Greco confirm that expectations for interest rate cuts in 2025 have been shortened from 100 basis points to 50 basis points, and it could even go down to 25 basis points if global tensions persist.
Potential long-term factors driving Bitcoin prices
In the face of the Fed's tough stances, the pressure to raise interest rates has also contributed to increasing the debt costs of the United States, negatively impacting the national economy. However, this has helped Bitcoin strengthen its role as a long-term hedge, alongside precious metals like gold. In the context of inflation and global instability, Bitcoin is increasingly seen as a sustainable asset protection option.
The long-term impact of monetary policy on cryptocurrency
Evaluating trends based on long-term data
Even if the Fed's policy is tough, this does not completely diminish the growth prospects of the cryptocurrency market. According to technical analysis from CryptoQuant, if Bitcoin maintains its growth rate as in the third year of the cycle, the price could increase by about 120% in 2025. This suggests that the positive trend remains long-term, even though short-term volatility may occur.
Could Bitcoin grow by 120% in 2025?
Although the price of Bitcoin is in a tangled area due to various factors, analytical data suggests that according to the development cycle, if it maintains the growth model of the third year, Bitcoin could exceed 120% in 2025. This gives investors hope for the cryptocurrency's outstanding potential, despite temporary fluctuations.
Conclusion
The cryptocurrency market continues to closely monitor developments from the Fed, especially the Dot Plot chart. Changes in interest rate policy could trigger waves of growth or temporary declines. But in the long term, technical analyses and macroeconomic factors still predict a strong positive trend for Bitcoin. Investors need to prepare their mindset and appropriate strategies to seize upcoming significant opportunities.
Source: https://tintucbitcoin.com/chu-tich-fed-lam-bitcoin-tang-vot-hom-nay/
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