Crypto Price Analysis 3-20: BITCOIN: BTC, ETHEREUM: ETH, SOLANA: SOL, ARBITRUM: ARB, INTERNET COMPUTER: ICP, NEAR PROTOCOL: NEAR, INJECTIVE: INJ
The crypto market rallied after the Federal Reserve decided to keep interest rates unchanged between 4.25% and 4.50% after the Federal Open Market Committee (FOMC) meeting. The Federal Reserve also stated it sees two rate cuts coming in 2025. With the markets recovering, the crypto market cap increased dramatically, rising over 3% to $2.8 trillion.
Bitcoin (BTC), which had faced significant selling pressure on Tuesday, made a sharp recovery, rising from a low of $81,197 to $87,427 before moving to its current level of $85,720. The flagship cryptocurrency is up over 3% during the ongoing session.
Ethereum (ETH) followed a similar trajectory as it rallied to reclaim the crucial $2,000 level. ETH is up over 4% and trading at $2,017. Ripple (XRP) also saw a substantial rally, rising over 6% to $2.44. Solana (SOL) is also up over 6% and trading at $133, while Dogecoin (DOGE) is up 3% and trading at $0.174. Cardano (ADA), Chainlink (LINK), Toncoin (TON), Stellar (XLM), Hedera (HBAR), and Litecoin (LTC) also registered substantial increases. However, Polkadot (DOT) was the outlier, declining over 1%.
Federal Reserve Holds Interest Rates Steady
The Federal Open Market Committee (FOMC) kept interest rates steady but indicated that reductions were likely later in the year. With concerns growing over the impact of tariffs, the FOMC kept the key borrowing rate between 4.25% and 4.50%, which has been the case since December. Markets have already priced in a zero chance of a move at the two-day policy meeting.
Despite the uncertainty created by President Trump’s tariffs and a policy of tax breaks and deregulations, officials said they see a half-percentage point of rate cuts in 2025, possibly over two rate reductions. Markets rallied on the news about further rate cuts, with the Dow Jones Industrial Average rising more than 400 points. However, Federal Reserve Chair Jerome Powell said the central bank would keep interest rates high if market conditions required.
“If the economy remains strong, and inflation does not continue to move sustainably toward 2%, we can maintain policy restraint for longer. If the labor market were to weaken unexpectedly, or inflation was to fall more quickly than anticipated, we can ease policy accordingly.”
The FOMC also noted the higher level of uncertainty in its post-meeting statement.
“Uncertainty around the economic outlook has increased. The Committee is attentive to the risks to both sides of its dual mandate.”
Powell also noted a moderation in consumer spending and anticipated that tariffs could put upward pressure on prices, hinting that these trends may have contributed to the committee’s cautious outlook. The FOMC also downgraded its economic outlook and bumped up its inflation projection. The committee expects the economy to grow at just 1.7% this year, down 0.4 percentage points from the last prediction in December. Meanwhile, core prices are expected to grow at a rate of 2.8%, up 0.3 percentage points from the previous prediction. The Fed also announced a scaling back of its quantitative tightening program through which it is slowly reducing the bonds on its balance sheet. As a result, the Fed will only allow $5 billion in maturing proceeds from Treasurys to roll off each month, significantly lower than the previous $25 billion.
Crypto Market Maintains Recovery
The crypto market embarked on a steady recovery after the Federal Reserve left interest rates unchanged, rallying to a $2.9 trillion market cap before registering a marginal decline and falling to $2.72 trillion. Major cryptocurrencies, including BTC, rallied. The flagship cryptocurrency rallied above $85,000 for the first time since March 4, while ETH, XRP, and SOL also reported impressive rallies. Another reason for the sharp jump in digital asset prices is the news of President Donald Trump’s expected presence at the Digital Asset Summit (DAS). Trump is expected to share information about his crypto policy at the summit. The rise is also attributed to the crypto market’s correlation with the traditional markets, which saw notable gains following the meeting. Crypto intelligence firm Santiment stated on Wednesday,
“Look for cryptocurrency markets to closely mirror the S&P 500 throughout the indefinite future, though individual altcoins can continue to see increased unpredictability and volatility.”
Crypto Fear And Greed Index Rises
The Crypto Fear and Greed Index used to measure investor sentiment by examining various market trends, has jumped 17 points in a day to reach 49. The jump to a neutral sentiment indicates investors have a balanced outlook on the market and are not overly fearful or excessively greedy. The improvement in sentiment came after markets reacted positively to the Federal Reserve’s decision to keep interest rates steady. Federal Reserve Chair Jerome Powell acknowledged inflation remains high and warned that President Trump’s tariff policies could prolong the struggle against rising prices.
However, the Fed has predicted two rate cuts in 2025, with Powell stating it is difficult to assess the full impact of tariffs on inflation, with the bank scaling back growth projections to 1.7%, down from 2.1% in December.
Expectations Building For Solana ETF
Expectations are rising for the launch of Solana ETFs, set for Thursday, March 20. Meanwhile, spot Bitcoin ETFs have reversed weeks of outflows to register weekly inflows of $483 million, according to data from SoSoValue. The upcoming Solana ETF launch and the renewed demand for Bitcoin ETFs indicate improved market sentiment and growing institutional interest in digital assets.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) surged past $86,000, reaching a 10-dayhigh, surging to an intraday high of $87,038 on Wednesday as investors reacted to signs of looser financial conditions from the Federal Reserve and expectations of a liquidity-driven rally. The Federal Reserve stated it would slow down, reducing its $6.8 trillion balance sheet, capping the runoff of Treasury Securities at $5 billion per month from the previous $25 billion. The move is expected to prevent market disruptions amid debt ceiling tensions. The bank also left interest rates untouched in the $4.25%-4.50% range and maintained its projection for two rate cuts in 2025 despite inflation concerns.
Improving financial conditions have fueled risk appetite, with the US Dollar posting its largest three-day decline since 2015, and Treasury yields and bond market volatility has fallen sharply. The People’s Bank of China also injected liquidity into its financial system in recent weeks, reinforcing a global easing trend that could help risk assets. According to Jamie Coutts, Chief Crypto Analyst at Real Vision, the shifts could set the stage for a significant Bitcoin rally in the next 90 days.
“Historically, these signals have often preceded large Bitcoin moves. Now, with the PBoC ramping up liquidity measures, the market may be underestimating how quickly Bitcoin could surge—potentially hitting new all-time highs before Q2 is out—despite ongoing concerns around Trump tariffs and a possible recession.”
BTC finally surged past the 200-day SMA and $85,000 as markets picked up following the FOMC meeting. The flagship cryptocurrency had plunged to an intraday low of $76,642 on Tuesday as selling pressure intensified. However, it recovered from this level to register an increase of 5.50% to reclaim $80,000 and settle at $82,943. Buyers retained control on Wednesday as the price rose almost 1% despite facing substantial selling pressure. Buyers lost momentum on Thursday as BTC dropped over 3% and settled at $81,136. Bullish sentiment returned on Friday as markets rebounded. As a result, BTC surged past the 200-day SMA, rising to an intraday high of $85,363 before settling at $84,002, ultimately registering an increase of 3.53%.
Source: TradingView
Buyers retained control on Saturday as BTC registered a marginal increase and settled at $84,398. Despite the positive sentiment, BTC was back in the red on Sunday, ending the week on a bearish note after dropping over 2%, slipping below the 200-day SMA and settling at $82,611. BTC started the current week positively, rising almost 2% and settling at $84,016. Bearish sentiment intensified on Tuesday as BTC fell to a low of $81,187. The price rebounded from this level to reclaim $82,000 and settle at $82,725, ultimately registering a drop of 1.54%. Markets recovered on Wednesday following the FOMC meeting, with the Fed leaving interest rates unchanged. As a result, BTC surged over 5%, moving past the 20 and 200-day SMAs and $85,000 to settle at $86,875. The current session sees BTC down over 1% and trading at $85,812. Sellers will look to retain control and push BTC below $85,000 and the moving averages. On the other hand, buyers will look to sustain momentum and push the price towards $90,000.
Ethereum (ETH) Price Analysis
Ethereum (ETH) surged over 6% on Wednesday, breaking out of its trading range after the FOMC meeting. The Fed announced it was keeping interest rates unchanged but hinted at two rate cuts in 2025, sending a wave of positivity over the markets. As a result, ETH rallied on Wednesday, surging past $2,000. ETH has been trading in a narrow range since last Monday, oscillating between $1,800 and $2,000.
ETH had slumped to a low of $1,759 on Tuesday, sparking concerns about a deeper correction. However, it rallied from this level to reclaim $1,900 and settle at $1,923 after an increase of over 3%. Buyers lost momentum on Wednesday as ETH registered a marginal drop and settled at $1,909. The price continued to drop on Thursday, slipping below $1,900 after a drop of 2.30% and settling at $1,865. ETH rebounded on Friday, rising 2.54% to reclaim $1,900 and settle at $1,912. Buyers retained control on Saturday, as ETH rose 1.35% and settled at $1,938.
Source: TradingView
However, it was back in the red on Sunday, dropping almost 3% and settling at $1,888. ETH started the current week on a bullish note, rising over 2% and settling at $1,928. The price continued to push higher on Tuesday, registering a marginal increase and moving to $1,933. ETH rallied on Wednesday as markets turned bullish after the FOMC meeting. As a result, ETH rallied, breaking out of its trading range to surge past $2,000 and settle at $2,050 after an increase of over 6%. The current session sees ETH down over 2% and trading at $2,013 as sellers look to drive the price below $2,000. However, the MACD has flipped to bullish, indicating buyers have the upper hand.
Solana (SOL) Price Analysis
Solana (SOL) is struggling to move past the 20-day SMA despite Wednesday’s rally, with the price in the red during the ongoing session. SOL fell to an intraday low of $112 on Tuesday as selling pressure intensified. However, the price rebounded from this level to register an increase of almost 6% to reclaim $120 and settle at $125. Buyers retained control on Wednesday as SOL rose over 1% and settled at $126. Despite the positive sentiment, SOL was back in the red on Thursday, dropping 2.53% and settling at $123. SOL rebounded on Friday as markets rallied. As a result, the price registered an increase of over 8% to move past $130 and settle at $133.
Source: TradingView
Buyers retained control on Saturday as SOL rose almost 2% and moved to $135. However, it was back in the red on Sunday after failing to move past the 20-day SMA, dropping over 7%, slipping below $130, and settling at $126. SOL started the current week positively, rising 1.58% and settling at $128. Despite the positive start, SOL dropped on Tuesday, falling over 2% and settling at $125. Bullish sentiment intensified on Wednesday as markets rallied. As a result, SOL surged over 8% and settled at $135. However, buyers have lost momentum during the ongoing session, with the price marginally down and trading at $132. Sellers will look to retain control and drive SOL below $130. On the other hand, buyers will look to push SOL past $140.
Arbitrum (ARB) Price Analysis
Arbitrum (ARB) plunged to a low of $0.294 on Tuesday thanks to growing selling pressure. However, it rebounded from this level, rising over 5% and settling at $0.337. ARB continued to push higher on Wednesday, rising over 3% and settling at $0.348. Selling pressure returned on Thursday as ARB fell 1.43% and settled at $0.343. Buyers returned to the market on Friday as the price rose 4.51% and settled at $0.359. ARB continued to push higher on Saturday, increasing 1.45% and settling at $0.364.
Source: TradingView
ARB was back in the red on Sunday, dropping over 4% to end the weekend on a bearish note at $0.348. The current week started on a bullish note as ARB surged over 6% on Monday and settled at $0.369. ARB faced considerable selling pressure on Tuesday as it dropped to an intraday low of $0.351. However, it rebounded from this level to register a marginal increase and settle at $0.371. Buyers retained control on Wednesday as ARB surged past the 20-day SMA to settle at $0.385 after an increase of almost 4%. The current session sees ARB down 2.49% and trading at $0. 375.
Internet Computer (ICP) Price Analysis
Internet Computer (ICP) registered a sharp decline last Monday, dropping almost 6% to $5.09. The price continued to drop on Tuesday, falling to an intraday low of $4.85 as selling pressure intensified. However, it rebounded from this level to register an increase of 6.48% to reclaim $5 and settle at $5.42. The price continued to push higher on Wednesday despite facing volatility, rising over 1% and settling at $5.49. ICP registered a marginal drop on Thursday as sellers gained the upper hand after a bout of volatility. Buyers returned to the market on Friday as the price rose almost 4% to $5.66. ICP continued to push higher on Saturday, increasing by 3% and settling at $5.83.
Source: TradingView
ICP fell back in the red on Sunday despite the positive sentiment, dropping over 4% and settling at $5.57. ICP started the current week positively, surging to an intraday high of $6.10. However, it could not stay at this level and fell below $6 to settle at $5.90, ultimately registering an increase of almost 6%. ICP fell to a low of $5.61 on Tuesday as selling pressure intensified. The price recovered from this level and settled at $5.83, ultimately registering a drop of 1.19%. Bullish sentiment returned on Wednesday as ICP registered an increase of almost 3%, going past the 20-day SMA and settling at $5.99. However, the price is back in the red during the ongoing session, down almost 2% and trading at $5.89.
NEAR Protocol (NEAR) Price Analysis
Near Protocol’s (NEAR) price action was relatively muted until Wednesday when it surged almost 8% to move past the 20-day SMA. NEAR started the previous week on a bearish note and plunged to a low of $2.14 on Tuesday as selling pressure intensified. However, it rebounded from this level, surging by 7% and settling at $2.44, but not before hitting an intraday high of $2.56. NEAR continued to push higher on Wednesday, increasing almost 5% despite considerable selling pressure. The price registered a marginal increase on Thursday, then rose 1.36% on Friday to settle at $2.60.
Source: TradingView
Price action remained positive on Saturday as NEAR rose 1.36% and settled at $2.64. However, selling pressure returned on Sunday. As a result, NEAR dropped almost 5% and settled at $2.51, ending the weekend on a bearish note. NEAR started the current week positively, rising nearly 5% and settling at $2.64. However, it was back in the red on Tuesday, dropping 1.96% and settling at $2.58. Bullish sentiment intensified on Wednesday as markets rallied. As a result, NEAR surged nearly 8%, going past the 20-day SMA and settling at $2.79. However, NEAR is back in the red during the current session, down almost 2% and trading at $2.74.
Injective (INJ) Price Analysis
Injective (INJ) started the previous week with a drop of over 7%. The price fell to $8.17 on Tuesday as selling pressure intensified. However, it rebounded from this level to register an increase of 3.54% to reclaim $9 and settle at $9.10. Bullish sentiment persisted on Wednesday as INJ rose over 6% and settled at $9.67. INJ was back in the red on Thursday, dropping over 4% and settling at $9.26. Buyers returned to the market on Friday as INJ surged over 8% to reach an intraday high of $10.30 before falling and settling at $9.95. Buyers retained control on Saturday as INJ rose 2.49% to move past $10 and settle at $10.20.
Source: TradingView
INJ fell back in the red on Sunday despite the positive momentum. As a result, the price dropped over 6%, slipping below $10 and settling at $9.59. The price recovered on Monday, registering an increase of just over 4% and settling at $9.97. INJ fell to an intraday low of $9.30 on Tuesday as selling pressure returned. It recovered from this level to settle at $9.67, ultimately registering a decline of $9.67. INJ recovered on Wednesday as markets turned bullish, rising almost 6% to $10.24. The current session sees INJ down over 4% as sellers look to push the price towards $9. Buyers will look to regain control and push INJ back above $10.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
