On Monday, March 14, the European Union rejected a proposal that would require Bitcoin (BTC), Ethereum (ETH) and other Proof-of-Work cryptocurrencies to follow more environmentally friendly practices.
By contrast, the price of Bitcoin was trading below $39,000 on Tuesday, March 15, as investors await the results of the US Federal Reserve’s two-day meeting, which will end on Wednesday.
In the previous week, the cryptocurrency was hovering between $37,000 and $42,000, according to data from CoinMarketCap. The flagship digital currency is currently trading at $38,634, down 0.87% in the last 24 hours and down 0.43% from the previous week.
interest rate increase
Federal Reserve Chairman Jerome Powell said earlier this month that the central bank is looking to raise the policy rate by a quarter point after the end of its March meeting to tackle inflation, which hit a 40-year high in February.
According to DailyFX analyst Nicholas Cawley, who believes Bitcoin’s lower price action can be attributed to this, global geopolitical issues are causing prolonged economic uncertainty.
“The Federal Reserve is expected to raise interest rates by 25 basis points on Wednesday, and while this is seen as a negative for BTC, the markets have known about this hike for several weeks and are pricing accordingly.”
However, trader Kamile Uray, who is closely followed by the domestic cryptocurrency community, also thinks that the Fed decision is already priced in. The trader also stated that the markets will revive on March 16. thinks.
“The market is waiting for the Fed decision, which will be on the 16th. Movements slowed. I think the news of a 25 basis point rate hike is priced in. Prospects are bought. Unless there is a reverse situation, the market will revive on the 16th. bitcoin waiting for the news horizontally. The price is tight, there is movement in the narrow area.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.