Bitcoin Corrects Following The Fed's Decision

REPUBLIKA.CO.ID, JAKARTA — Bitcoin has corrected to around $70,000 after the Federal Open Market Committee (FOMC) meeting results strengthened signals of tight monetary policy. Pressure is coming from expectations of high interest rates that are holding back fund flows to risk assets.

Previously, the price had strengthened approaching $76,000 on 17 March 2026, driven by institutional fund flows into spot Bitcoin ETFs. However, a correction of around 7 to 8 percent occurred after investors adjusted positions following the FOMC results.

Indodax Vice President Antony Kusuma said the current market movement is influenced by changes in expectations regarding the direction of global monetary policy. He explained that the FOMC’s decision to maintain the benchmark interest rate and upward revision of the 2026 inflation projection indicate that The Fed’s policy direction remains hawkish. “The market has picked up signals that inflation has not fallen as quickly as hoped, thus limiting liquidity to risk assets like crypto. However, this is part of the market’s adjustment to evolving global economic dynamics,” said Antony on Saturday (21/3/2026).

The Fed maintained interest rates in the range of 3.50 percent to 3.75 percent and raised the 2026 inflation projection to around 2.7 percent. Fed Chair Jerome Powell emphasised that rate cuts would depend on inflation developments, amid pressures from geopolitical conflicts and rising energy prices.

In the market, the $70,000 to $72,000 level is being watched by investors as a support area. As long as it holds, the price could stabilise in the short term with support from institutional fund flows, but a decline could continue if that level is breached.

Antony said that in the current market conditions, market sentiment tends to be influenced by macroeconomic factors. “However, for investors, phases of correction and consolidation like this can be utilised to reorganise investment strategies more wisely with proper risk management and a long-term focus.”

Indodax stated that it remains focused on providing a safe and transparent crypto trading ecosystem. The platform also promotes education through literacy programmes, including introducing strategies like Dollar Cost Averaging to cope with market volatility.