**Bitcoin Price Volatile After Fed Suggests Possible Pause in Rate Hikes**
Bitcoin experienced significant price swings on March 22 following hints from the U.S. Federal Reserve that it might halt increases in interest rates.
**Powell on Potential Rate Changes**
According to data from Cointelegraph Markets Pro and TradingView, BTC/USD saw abrupt fluctuations as the Fed raised rates by an expected 25 basis points.
During a press briefing, Fed Chair Jerome Powell downplayed the recent banking crisis and its impact, indicating that the rate hike on that day could be the final one.
In his prepared statement, Powell mentioned that recent events in the banking system could lead to tighter credit conditions for households and businesses, affecting the overall economic situation. He stated that it was too early to assess the full extent of these effects and thus premature to determine the appropriate monetary policy response.
As a result, Powell noted a shift in the Fed’s stance, stating that instead of expecting a continuous series of rate hikes to combat inflation, they now view some additional policy adjustments as potentially necessary.
BTC/USD initially dropped to $27,867 on Bitstamp during these developments before rebounding above $28,000. However, the price subsequently declined as investors processed Powell’s statements regarding future policy decisions.
Regarding the Fed’s approach to rate hikes, Powell emphasized the use of terms like “may” and “some” rather than “ongoing” to describe upcoming policy changes, a move considered more dovish by some market analysts.
In response, while some observers viewed Powell’s actions as hawkish for prioritizing inflation over the banking crisis, others highlighted the Fed’s commitment to maintaining higher rates for a longer period to combat inflation tendencies.
**Fluctuations in BTC Price**
Bitcoin did not reach the anticipated $30,000 mark following the Fed’s rate hike decision. As analyst Matthew Hyland noted, prices fluctuated, with shorts and longs being liquidated, ultimately leading to a return to the price level observed before the rate announcement.
Data from Coinglass indicated total crypto liquidations of $36 million for shorts and $78 million for longs on that day.
**Image Source:** Momentum studio / Shutterstock
