Bitcoin (BTC) faced the possibility of a significant decline below $61,000 on March 20 as experts cautioned that support levels might be breached. BTC/USD continued to experience selling pressure, with its price dropping to as low as $60,760 on Bitstamp, marking a 17.5% decrease from its all-time high. Factors contributing to this decline include the outflows from US spot Bitcoin exchange-traded funds (ETFs) and the upcoming interest rate decision by the Federal Reserve on March 20. While the outcome of the Federal Open Market Committee (FOMC) meeting is highly anticipated, investors are particularly focused on the comments made by Fed Chair Jerome Powell, as they could impact risk assets. The Kobeissi Letter, a trading resource, noted that it is unlikely that the Fed will change rates immediately. According to the FedWatch Tool by CME Group, the chances of a rate cut on March 20 are just 1%, while the odds for a rate cut in May are 9.1%. However, the June FOMC meeting has a more favorable probability of 55%. In addition to these factors, there were net outflows from spot ETFs for the second consecutive day, which could further impact BTC price strength. The Grayscale Bitcoin Trust (GBTC) saw a decrease in outflows from the previous day but still experienced a significant drop. Tedtalksmacro, a financial commentator, noted that almost $500 million USD has been withdrawn from spot BTC ETFs in the past two trading days. Trading firm QCP Capital warned that this consecutive net outflow could have serious consequences for BTC’s price. It remains important for readers to conduct their own research and exercise caution when making investment and trading decisions.
Bitcoin's exchange-traded fund (ETF) sees nearly $500M in net outflows, leading to a 17.5% drop in BTC price.