Bitcoin Weakens to $70,000 as Investors React to the Fed's Tight Policy
JAKARTA — Bitcoin (BTC) prices corrected to around $70,000 after the Federal Open Market Committee (FOMC) meeting results indicated signals of monetary policy that remains inclined towards tightness.
This movement was influenced by macroeconomic factors, including a revised increase in US inflation to around 2.7% as well as interest rates holding steady in the range of 3.50% to 3.75%.
Previously, Bitcoin had strengthened approaching $76,000 on Tuesday (17/3/2026), driven by institutional fund inflows into spot Bitcoin exchange-traded funds (ETFs) amounting to $199.37 million for the seventh consecutive session.
This condition reflects sustained institutional investor interest amid market volatility. However, following the FOMC meeting, investors made adjustments, as reflected in the price correction of around 7%–8%.
INDODAX Vice President Antony Kusuma stated that the current cryptocurrency market movement is influenced by the FOMC results, which are shaping new investor expectations regarding the direction of global monetary policy.
“The FOMC’s decision to maintain the benchmark interest rate and the upward revision of the 2026 inflation projection indicate that the Fed’s policy direction remains inclined towards hawkish,” said Antony in an official statement on Friday (20/3/2026).
In its latest decision, the Fed maintained interest rates in the range of 3.50% to 3.75% and raised the 2026 inflation projection to around 2.7%.
Fed Chair Jerome Powell conveyed that interest rate reductions will heavily depend on inflation developments, amid uncertainties due to conflicts in the Middle East and rising energy prices.
This situation makes the prospects for near-term interest rate cuts more limited, thereby affecting investor interest in risky assets, including cryptocurrencies.
As long as this level holds, price movements have the potential to remain stable in the short term, supported by institutional fund inflows that help absorb selling pressure.
However, if the price breaks through that support level, further price adjustments could continue to lower levels.
Antony added that current cryptocurrency market sentiment tends to be influenced by macroeconomic factors.