Can Bitcoin Price Break Through $80,000 After FOMC?

• Bitcoin price reacts ahead of FOMC.
• What the market should expect depending on the outcome.
• Stablecoin exchange outflows hit a historic high. What does this mean for BTC price?

Bitcoin price was just $500 shy of clocking $80,000 at its peak level last week. This week, the market is on edge once again, mainly because of the latest FOMC data. Market experts and analysts seem curious about how the FOMC data will affect crypto prices.

Bitcoin price has since retreated by over 3% from $80,000. It briefly dipped below $76,000 in the last 24 hours. Analysts believe this performance reflected investors taking action ahead of this week’s FOMC meeting.

Zooming out on the weekly BTC price chart revealed that it has been recovering in April after an overall downtrend since October. But will the king of the cryptocurrencies maintain the uptrend in the next 4 weeks?

Bitcoin Price Outlook: How the FOMC Decision Could Impact BTC

The current Bitcoin price retracement was likely due to investors attempting to secure their recent gains before more uncertainty. FOMC data has historically influenced BTC and other risk-on assets.

The FOMC meeting reveals the FED’s next major interest rate decision. Consequently, interest rates influence liquidity conditions, and this is what BTC holders exiting their positions have been anticipating, hence the sell pressure.

Speaking of the FOMC’s impact on BTC price, the current consensus is that the Federal Reserve will maintain a steady rate.

Crypto analyst and MN Fund founder Michael Van De Poppe stated that such Bitcoin price pullbacks tend to occur before the FOMC event. The analyst also believes that BTC price will likely resume its upside if it manages to stay above $73,000. He also hinted that a deeper pullback might occur if the price slides below $73,000.

Meanwhile, analysts expect the market to maintain a flat performance if the FED announces a 3.75% interest rate. Prices may crash if the FED raises rates to 4%, while a rally might be on the cards if rates drop to 3.5%.

Polymarket predicted that BTC price would drop to $70,000 on 29 April. This signaled that most market participants were bearish, and a contrarian outcome could trigger heavy short liquidations. The cryptocurrency hovered at $76,284 at press time.

Crypto Investors are Shifting to Stablecoins, But What Does This Mean for Bitcoin Price?

One of the main reasons predictions have been leaning toward the bears was the impact of recent geopolitical tensions. Oil prices have been climbing, which tends to push inflation higher.

The FED may decide to raise rates to counter the rising inflation. These concerns might be linked to the spike in stablecoin outflows this week. According to CryptoQuant, stablecoin outflows on exchanges just surged to historic highs.

The surge in stablecoin outflows from exchanges suggests that buying pressure has been declining. According to CryptoOnchain analysis, this could signal that whales were transferring their dry powder. It suggests they did not intend to buy on exchanges anytime soon.

The stablecoin move may also indicate that whales were taking profits. This suggests that whales may be anticipating another downside swing after encountering resistance near $78,000.

Based on this analysis, it is clear that the bulls faced significant downside risk. This may explain the recent liquidity outflows. However, the extent of this week’s FOMC’s impact on the price remained shrouded in uncertainty.

Bitcoin price has benefited from healthy demand from institutional players, ETFs, and accumulating addresses. These have been building a solid floor, but the big question now is whether inflation and higher rates could destroy that foundation. These concerns could undermine its ability to push past $80,000.

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