Bitcoin hits bottom with volatility, pay attention to signals of Federal Reserve policy shift Entering mid March, Bitcoin is currently in a period of consolidation after experiencing a rapid rise at the beginning of the year. From a technical perspective, the price has been repeatedly tested near key support levels, and market sentiment tends to be cautious. There are three core factors currently affecting the trend of Bitcoin: One is the expectation of the Federal Reserve's monetary policy. The market is generally concerned about when the Federal Reserve will start its interest rate cut cycle. The latest economic data shows that inflationary pressure still exists, but there are signs of cooling in the job market. If the Federal Reserve releases a dovish signal in the second quarter, it will provide upward momentum for risky assets such as Bitcoin. The second is geopolitical uncertainty. The global geopolitical situation remains tense, and risk aversion is occasionally rising. The narrative of Bitcoin as "digital gold" is reinforced in this context, with some funds seeing it as a tool to hedge against risks in the traditional financial system. The third is the flow of institutional funds. The Bitcoin spot ETF continues to attract capital inflows, indicating that institutional allocation demand remains strong. In the long run, the institutionalization process is an important foundation for supporting the value of Bitcoin. In terms of short-term strategy, it is recommended to pay attention to the statement of the Federal Reserve's March interest rate meeting and the support of key technical levels. If the current support range can be maintained, there is a possibility of restarting the upward trend in the future; If it falls below, we need to be alert to the risk of further pullback. Overall, Bitcoin is still in a long-term upward trend, and the current volatility is a healthy adjustment process. Patiently wait for the macro environment to become clear and seize opportunities for medium - and long-term allocation.