BTC Market Overview

BTC has been stuck within the $80K-$85K range for a while. Analysts remained cautious despite hopes of a potential Fed’s dovish tilt.

On Tuesday, Bitcoin (BTC) triggered another bout of crypto market sell-off after dipping to $81K from $84K, resulting in a 1.54% loss for the day.

It was the first day of the FOMC (Federal Open Market Committee) meeting, and analysts linked the sell-off to geopolitical tensions. According to the crypto options trading desk QCP Capital, renewed tensions in the Middle East fueled the sell-off. Part of its daily market report read:

> “In the absence of fresh tariff headlines, geopolitics has returned to the forefront. Israel’s renewed strikes on Gaza following a temporary truce have pushed gold soaring past $3,000, while BTC continues to exhibit a negative correlation.”

What’s Next Post-FOMC?

The BTC decline saw top altcoins post varied retracements. Solana (SOL) dropped 5% but closed the session with only a 2% loss. XRP also recorded a 2.2% loss on Tuesday, similar to ADA. Only Ethereum (ETH) stabilized with a 0.27% gain.

Conversely, EOS (EOS) and Hyperliquid (HYPE) were top performers, gaining 17% and 7%, respectively, during the same period.

At press time, BTC reclaimed $83K, while ETH was above $1.9K just hours before the FOMC announcement. However, Binance Coin (BNB) and Dogecoin (DOGE) still experienced sustained sell-offs.

Whether the Fed rate decision will boost crypto recovery or prolong the decline remains uncertain. Jake Ostrovskis, an OTC (over-the-counter) trader at Wintermute, noted that BTC and crypto would remain capped due to their positive correlation with risk-on U.S. equities rather than gold.

> “With correlations firm with the former (Nasdaq), the market will struggle to turn higher without being led by wider risk. You cannot trade Crypto in a vacuum.”

Swissblock, a blockchain analytics firm, reiterated that the market is in a ‘high-risk’ state, indicating that downside risk cannot be overlooked.

The risk-off sentiment was also reflected in the crypto fear and greed index, which is at ‘fear’ levels of 32. While this might present a ‘buy’ opportunity for long-term investors, the Fed policy outlook could provide important clues.

Meanwhile, QCP Capital cautioned that President Trump’s new round of tariffs, scheduled for April 2, could be crucial data to monitor after the Fed meeting. They stated:

> “BTC at $80K: A real floor or a mirage? Momentum & carry trades are unwinding. While BTC has found some support, the macro backdrop suggests it could be short-lived. Looking ahead, we remain cautious…”