#FedRateHikeExpectationsResurface

The Federal Reserve kept interest rates stable between 3.50 and 3.75 at its March meeting, but its hawkish tone emphasized that inflation was rising due to oil prices, reviving expectations of a rate hike. Market pricing, according to the CME Fedwatch tool, saw the probability of at least a quarter-point rate hike by the end of the year climb to 25 percent, a significant increase compared to previous weeks. High oil prices and geopolitical tensions in the Middle East strengthened inflation expectations, making it more difficult for the central bank to ease monetary policy. The upward trend in Treasury yields, coupled with a strengthening dollar, supported selling pressure. Analysts note that these developments tightened liquidity, increasing the opportunity cost of risky assets like Bitcoin and Ethereum and triggering a pullback in the crypto market. However, experts emphasize that these expectations represent a temporary correction of the bull cycle and that fundamental economic dynamics remain strong. Investors are cautious about short-term fluctuations, closely monitoring data on the long-term interest rate path and shaping their portfolio strategies accordingly.