Bitcoin floating above $43k as Fed decision looms

Bitcoin bounced modestly Tuesday, hovering back around $43,500 after its selloff earlier this month

share

Tuesday witnessed a modest decline in equities as investors navigated market uncertainties influenced by the anticipation of big tech earnings and cautious signals from Federal Reserve officials.

Meanwhile, cryptocurrencies presented a mixed picture, amidst a week packed with key earnings reports and the looming Federal Reserve decision on interest rates set for Wednesday.

Bitcoin bounced modestly Tuesday, hovering around $43,500 after dipping below the $40,000 level late last week. Ether traded sideways Tuesday morning, but both cryptocurrencies were able to maintain their recovery path after a disappointing few weeks. 

Bitcoin (BTC)  is now up around 3.3% over the month and ether (ETH) has gained 1% in the same time period. Analysts are growing cautiously optimistic that upcoming tailwinds will propel bitcoin higher. 

“Will bitcoin hit a $20,000 bottom this year, as some analysts and — notably — Deutsche Bank’s recent survey predicts? I would say unlikely,” Lucas Kiely, chief investment officer of digital wealth platform Yield App, said. “The big story this year is about crypto maturing into a stable market that combines the benefits of DeFi with best practice from [traditional finance].” 

Read more: SEC officially approves spot bitcoin ETFs in landmark decision

The latest Job Openings and Labor Turnover Survey (JOLTS) data, released after the open Tuesday, showed there were an estimated 9.026 million job openings in December, a slight increase from November and higher than analysts had anticipated. 

After clocking record highs on Monday, the S&P 500 and Dow Jones Industrial Average slipped at the open on Tuesday, losing 0.1% each. The Nasdaq Composite also dipped, falling 0.4% in the first hour of trading. 

Monday’s equity rally, analysts say, is largely thanks to a late-afternoon Treasury announcement that quarterly borrowing estimate by roughly $56 billion. 

“We know that was the key positive catalyst because stocks accelerated the rally during the final hour and sectors that benefit most from falling yields (small caps and tech) outperformed,” Tom Essaye, founder of Sevens Report Research, said. “Specifically, the Treasury only needs to borrow $760 billion in Q1 compared to the previously estimated $816 billion.”

The Federal Open Market Committee will wrap its two-day policy-setting meeting Wednesday and futures markets Tuesday morning showed there is an overwhelming expectation that rates will stay where they are. Future market moves will depend on Chair Jerome Powell’s comments and the statement from the Committee, Essaye said. 

“There’s virtually zero chance of a rate cut at tomorrow’s meeting,” he added. “What will make this meeting hawkish or dovish (and push stocks lower or extend the rally) will be whether the Fed hints that rate cuts are coming soon.”


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template.png

Research

The march toward an interoperable and onchain-by-default internet depends on reliable messaging and value transfer across heterogeneous domains. Crosschain protocols now process >$1.3T in combined annual transfer volume and secure tens of millions of user interactions, yet no single design dominates.

article-image

The goal, per Santiago Santos, is to make crypto a relatable piece of tech for people who may not even understand it

article-image

Stripe stablecoin unit aims to operate under a federal charter enabling regulated stablecoin issuance and custody services

by Blockworks /
article-image

Will TradFi make crypto better or create more problems than it solves?

article-image

Subtle decisions by risk curators saved Aave from significant turmoil

article-image

The new Rootstock Institutional unit aims to connect professional investors to Bitcoin-native yield and liquidity strategies anchored in BTC’s security layer

by Blockworks /
article-image

DOJ files record civil forfeiture against more than 127,000 BTC linked to scam activity

by Blockworks /