Key Takeaways
- $71 billion was wiped out from the crypto market ahead of the Fed’s interest rate decision as traders and investors suffered massive market liquidations.
- Bullish sentiment from the Fed’s interest rate could see Bitcoin’s price rally back towards $80,000.
- The price of BTC continues to defend the $60,000 region, acting as a support zone, as it must hold this level to sustain bullish momentum.
From rallying to a high of $75,500 to crashing to $71,000, Bitcoin in a few hours due to US Federal Reserve Interest Rate news, which has resulted in a wide market wipeout for many crypto assets, including the number one crypto asset.
Following a strong market open a few days ago, Bitcoin displayed one of the best price actions the market has been missing for the longest time, as the price closed around $70,600 during the previous week’s market rally, which rallied towards $75,500.
This rally in the last few days for traders and investors created some measure of optimism to the upside, as many traders opened long positions looking to ride the market momentum towards $80,000, which has acted as a key supply zone, but this hasn’t played out as anticipated, as the price has crashed significantly.
Fed Rate Sparks Market Crash as Bitcoin Trades Around $71k
Traders and investors are glued to their expectations ahead of the US Federal Reserve rate decision scheduled for today, March 18th, 2026, as a favourable rate decision could see the market respond positively. However, expectations for interest rates remain unchanged despite recent uncertainties over geopolitical tensions and the US-Iran war, which have affected the market overall.
While the Fed interest rate looms, the market has seen over $71 billion liquidated in the last few hours, amid ongoing US-Iran tensions that continue to cast uncertainty over the market. Bitcoin has responded very well in the last few weeks, but could see a strong market rally if the news in the next few hours favours the market. Will Bitcoin’s price rally following the news scheduled for the next few hours?
Bitcoin Price Analysis Ahead of Fed Interest Rate
Source – Bitcoin Price Action Ahead of Fed Rate from TradingView
Ahead of the Fed interest rate decision, Bitcoin’s price has crashed from a high of $75,500 to a region of $71,000, with the price likely to crash further to a region of $86,700, acting as a strong demand zone for further price continuation.
The key zone for BTC price remains $60,000, as the asset must trade above this support zone to stay bullish for now; a break below it could eventually see the price crash lower.
If BTC reclaims $80k and $100k, we could see it maintain strong bullish momentum to the upside. The price would aim for a short-term price target of $75,000, acting as the next supply zone.
FAQs
How does oil affect Bitcoin?
Oil prices do not directly affect Bitcoin prices; however, a scarcity of oil could affect the global energy market, which could also affect Bitcoin mining, allowing demand for the crypto asset to grow as the price gains some momentum to the upside.
How do conflicts in the Middle East affect the oil industry?
The Middle East conflict has led to oil scarcity, with the recent US-Iran war closing the Strait of Hormuz, through which 20% of the world’s oil supply passes, triggering a global spike in oil prices.
What will happen to crypto if the US attacks Iran?
Speculations are suggesting the price of BTC could go lower, but they have proven wrong as the price is rallying. Gold and Oil have seen strong price action over the last few days.
How much BTC does Iran hold?
There are no exact figures yet, but Iran has been conducting many transactions and mining activities with Bitcoin lately, despite the recent US-Iran war.
Will the Iran War affect crypto?
The crypto market has experienced a crash in the last few hours amid the US-Iran war, as US President Donald Trump hints at a combat operation. The crypto market could see a significant crash when it opens on Monday.
Related Read
What Happens to Crypto if Oil Hits $200?
How Oil Supply Could Affect Crypto as Oil Eyes $100 per Barrels
