Bitcoin and Altcoins Face Selling Pressure Ahead of FOMC Meeting
The broader cryptocurrency market is experiencing a major sell-off, with Bitcoin (BTC) correcting 4% and dropping to $65,000. Altcoins, including Ethereum, are facing even steeper corrections of 7-8% and some even in double digits. This selling pressure comes just a day before the crucial Federal Open Market Committee (FOMC) meeting scheduled for Wednesday.
FOMC and Central Banks Meeting
This week, on March 20, the Federal Reserve’s FOMC is set to announce its decision on interest rates, along with a speech from Chairman Powell. According to CME data, there is a 99% probability that interest rates will remain unchanged.
Investors are particularly interested in Jerome Powell’s remarks after the FOMC meeting as they could provide insights into the Fed’s outlook on inflation and its potential impact on Bitcoin and other assets.
In another significant development, the Bank of Japan has made a historic decision to raise its benchmark interest rate from -0.1% to 0-0.1%. This marks the first rate hike since 2007 and officially ends the eight-year period of negative interest rates.
Ethereum Price Faces Major Selling Pressure
QCP Capital, a prominent player in the cryptocurrency market, reports a predominantly bearish sentiment prevailing in the Asian trading session. Ethereum (ETH) has notably dipped to recent lows, reaching $3,382. This decline signals growing concerns among investors.
The fear surrounding ETH seems to be increasing, with front-end downside skew deepening to -15%. This indicates heightened apprehension among market participants. Additionally, Ethereum whales have been moving a significant amount of coins to exchanges.
Recent data analysis from Lookonchain reveals an interesting Ethereum transaction executed by a savvy whale. This whale, who holds substantial assets, deposited 13,691 ETH (approximately $9.06 million) into the Binance exchange. This strategic move suggests an intention to capitalize on profits.
A smart whale deposited 13,691 ETH ($9.06M) to #Binance in the past 2 hours to take profits.
This whale started trading $ETH on Aug 9, 2023 and made a total of 5 trades.
He lost money in the first trade and won the last 4 trades, with a total profit of $16.9M!… pic.twitter.com/5DtE4ilWMF
— Lookonchain (@lookonchain) March 19, 2024
Meanwhile, early indications from spot ETF tracking reveal a record outflow of -$642.5 million for Grayscale Bitcoin Trust (GBTC). QCP Capital closely monitors the aggregate ETF flow numbers and highlights that a net negative outcome would signal a distinctly bearish market sentiment.
Hot Take: Impact of FOMC Meeting and Selling Pressure on Cryptocurrencies
The upcoming FOMC meeting and the selling pressure in the cryptocurrency market are likely to have significant implications for Bitcoin and altcoins. Here’s what you need to know:
FOMC Meeting Outcome
- The Federal Reserve’s decision on interest rates is highly anticipated by investors.
- Jay Powell’s remarks after the meeting could provide insights into the Fed’s view on inflation and its potential impact on Bitcoin.
- A decision to keep interest rates unchanged may lead to a positive reaction in the crypto market.
Impact on Bitcoin and Altcoins
- The correction in the cryptocurrency market, particularly for altcoins like Ethereum, indicates a bearish sentiment among investors.
- The selling pressure may continue if the FOMC meeting outcome raises concerns about inflation and triggers risk-off sentiment.
- Ethereum’s price is facing significant selling pressure, with whales moving coins to exchanges and investors expressing growing concerns.
As a crypto investor, it is crucial to closely monitor the FOMC meeting outcome and any subsequent market reactions. Stay informed and adjust your investment strategy accordingly.
Gapster Innes emerges as a visionary adeptly blending the roles of crypto analyst, dedicated researcher, and editorial maestro into an intricate tapestry of insight. Amidst the dynamic world of digital currencies, Gapster’s insights resonate like finely tuned harmonies, captivating curious minds from various corners. His talent for unraveling intricate threads of crypto intricacies melds seamlessly with his editorial finesse, transforming complexity into an eloquent symphony of comprehension.