• The upcoming Federal Open Market Committee (FOMC) meeting could be the most important of the year for the Bitcoin and crypto market, according to QCP Capital.
• The Fed’s dot plot will show to what level and for how long the “higher for longer” strategy might extend.
• The DXY dollar index is expected to remain a main indicator for Bitcoin and crypto prices.

The Upcoming FOMC Meeting

QCP Capital, a leading digital asset trading firm in Asia based in Singapore, has released a new market analysis related to the current macroeconomic environment, calling the next Federal Open Market Committee (FOMC) meeting of the U.S. Federal Reserve (Fed) on the 22nd of this month the most important of the entire year.

Dot Plot

More important, however, is what the Fed has been letting slip in its speeches lately. Fed officials have consistently talked about a prolonged interest rate hike, with some even commenting on the difficulty of achieving a soft landing. Therefore, according to QCP,the March 22 meeting will be trend-setting for the entire year as market participants will see where the Fed will place the terminal rate in 2023 and whether they plan to cut rates in 2024. This tool is officially called Policy Path Chart and is published by Fed four times a year following meetings of 16-member FOMC. It will show to what level and for how long their „higher for longer“ strategy might extend.

DXY Dollar Index

DXY dollar index is expected to remain a main indicator for Bitcoin and crypto prices due weaknes earlier this week was due China’s manufacturing purchasing managers‘ index which reached 52.6 points reawakened causing Bitcoin prices rise up again .

Impact on Crypto Market

The impact of FOMC decisions is likely to have an effect on crypto asset prices throughout this year so it’s best that traders keep an eye on developments from this major meeting before taking any action or investing any money into cryptocurrencies over next few weeks .

Conclusion

By understanding how these macroeconomics events affect cryptocurrency markets , investors can make informed decisions during periods when economic news affects price movements significantly . Therefore keeping track of FOMC meetings should be part of any investor’s investment strategy when it comes to investing in cryptocurrencies