As the U.S. Federal Reserve is set to announce its key interest rate decision, the price of Bitcoin has sharply declined by approximately $2,000, falling below $72,500 and hitting a multi-day low. This marks the second-to-last Federal Open Market Committee (FOMC) meeting before Fed Chair Jerome Powell's four-year term ends on May 15.
Today's FOMC Meeting Preview
Market consensus suggests that there will be no changes to interest rates during this meeting. Most analysis reports indicate that given the escalating situation in the Middle East, which has increased global economic uncertainty and led to rising oil prices, Powell may choose to keep rates unchanged.
Bitcoin Price Volatility
Against this backdrop, Bitcoin's price quickly plummeted, depreciating by about $2,000 within 90 to 120 minutes. Bitcoin has historically reacted strongly to Powell's speeches, resulting in significant price fluctuations. Therefore, even if the Fed decides to maintain interest rates, further market turbulence is expected today.
