In the world of crypto trading, one trader suggests that leveraged bets before the United States’ monthly interest rate decision are a reliable route to financial loss. This warning follows the Federal Reserve’s recent announcement that it intends to maintain interest rates in the target range of 4.25% to 4.5%, a move that barely impacted Bitcoin’s price as the market had widely predicted the status quo.
Despite this, the overall crypto market experienced an upswing after Fed chair Jerome Powell downplayed recession fears, leaving those who had bet on a downturn in a tight spot. “This is a surefire way to lose money,” remarked Michael van de Poppe, founder of MN Trading Capital, in a March 19 post.
Within a 12-hour window, CoinGlass data revealed that $188.77 million was liquidated from the crypto market, with $127.80 million being short positions. After Powell’s statement, Bitcoin surged 3.84% in six hours to reach $87,427 before retreating to $85,760. Similarly, Ether and XRP saw gains of 2.27% and 2.40% respectively, per CoinMarketCap data.
Van de Poppe noted, “The initial statement isn’t as important. The words from J. Powell are. That’s what likely defines Bitcoin’s price movement for the upcoming period.”
However, the Bitcoin rally may not continue in the short term, according to crypto trading account BitcoinHyper. Matt Mena, crypto research strategist at 21Shares, echoed this sentiment, stating, “Bitcoin is likely to remain in consolidation mode until a clear catalyst emerges.”
As per Powell’s statement, FOMC members predict interest rates will stand at 3.9% at the end of 2025, and 3.4% by the end of 2026.
This piece does not provide investment advice or recommendations. Every investment and trading move carries risk, so readers should conduct independent research before making decisions.
