On March 20, 2024, the crypto market seems to be worried again as the price of Bitcoin has dropped back to $61,000. Meanwhile, according to TradingView, the price of sites like Bitstamp is as low as $60,760.
Bitcoin's price is down more than 17.5% from its all-time high. Yet investors continued to sell as the currency fell. These include U.S. exchange-traded Bitcoin ETFs that face interest rate changes by the Federal Reserve on the same day.
Although the outcome of the US Federal Open Market Committee (FOMC) meeting is still somewhat predictable, the comments of FED Chairman Jerome Powell are one of the important factors that directly affect the price of risky assets like Bitcoin.
One of the most popular engines used to look for interest rate cuts FedWatch According to the CME Group, there is only a 1% chance of an interest rate hike on March 20 and a 9.1% chance for the next FOMC meeting in May.
The end of the FED is approaching. Various investors have gradually withdrawn assets to reduce their risk. This includes Bitcoin ETFs, according to investment firm Foresight.
Grayscale Bitcoin Trust (GBTC) saw a record $642 million inflows on March 19, while other funds exited a record $642 million on March 19. Similarly there has been a massive capital outflow.
Also, in a daily news release “Asia Morning Color” sent to Telegram channel subscribers, trading firm QCP Capital warned that a Bitcoin ETF exit event could have a direct and serious impact on Bitcoin’s price strength.
Source: Cointelegraph
“Avid gamer. Social media geek. Proud troublemaker. Thinker. Travel fan. Problem solver.”