The cryptocurrency market is awaiting the Federal Reserve’s first interest rate decision of 2024, with expectations of a 96.9% chance of rates remaining unchanged. However, the second decision in March introduces a 47% possibility of a 25 basis points rate cut, keeping investors on edge.

The Federal Reserve’s interest rate decision is a crucial factor influencing both traditional and cryptocurrency markets. An unchanged rate could maintain stability, supporting assets like Bitcoin and Ethereum.

Conversely, a rate cut may signal economic caution, impacting the attractiveness of risk assets like cryptocurrencies or prompting investors to seek higher returns in the crypto market if traditional investments decline.

Analyzing the Bitcoin chart, a battle between bulls and bears is evident. The $42,500 resistance level is critical, and a decisive close above it could indicate increasing bullish momentum. On the downside, the $39,528 support level, aligning with a psychological round number and a previous area of interest, is expected to be defended by traders.

The upcoming Fed decision could act as a catalyst for Bitcoin’s next significant move. If interest rates remain unchanged, Bitcoin might continue testing the resistance level, with a breakout signaling a bullish reversal. However, a rate decrease could lead to a more unpredictable reaction in the Bitcoin market.