As the weekly Bitcoin ETF network exits around $500M, BTC’s price decline reaches 17.5%.
Bitcoin (BTC) threatened a new breakout at $61,000 on March 20, with analysis warning that support could be “cracked”.
BTC price weakness has targeted $60,000
Data from Cointelegraph Markets Pro and TradingView followed another night of BTC price losses, which have so far fallen to $60,760 on Bitstamp.
Now down 17.5%, BTC/USD continues its selling pressure thanks to several key headwinds.
As Cointelegraph reports, these include the exit of Bitcoin Exchange Traded Funds (ETFs) from the United States and the March 20 decision on interest rates by the Federal Reserve.
While the outcome of the Federal Open Market Committee (FOMC) meeting is all but assured, Fed Chairman Jerome Powell's next comments for risk assets are under the microscope.
“With the Fed meeting less than 24 hours away, the Fed is unlikely to change rates tomorrow,” business resource Kobeisi Letter wrote in part in a recent analysis on X (formerly Twitter).
“However, after recent events, all eyes will be on guidance. We maintain the view that it is too soon to form.
The latest estimates from CME Group's FedWatch Tool put the odds of a “pivot” — or return to rate cuts — at just 1% for March 20 and 9.1% for the upcoming FOMC meeting in May.
A June Fed event has 55 percent better odds.
Analyst: “Some Will Cut First” Before Bitcoin ETF Rebounds
The spot ETF, meanwhile, saw a second consecutive day of net inflows, according to data from UK-based investment firm Farside.
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Withdrawals from Greyscale Bitcoin Trust (GBTC) were lower than the $642 million recorded on March 19, despite lower inflows from other ETF products that made up for the lackluster statistics.
“Over the past two trading days, nearly $500M has been drained from the spot BTC ETF,” responded financial analyst Tedtalksmacro.
“Traders wait and stand pre-FOMC (or yet to exit) + tax season are likely factors for a slowdown in the US. Regular programming will resume, but some will be cut first.”
In an “Asia Morning Color” daily bulletin sent to Telegram channel subscribers, trading firm QCP Capital warned that a second day of net outflows could have a serious impact on BTC price strength.
“Greyscale saw slightly less flow overnight at 443.5m but does the withdrawal from the other EFAs bring us to a net positive number today?” he asked.
“Another net negative number could cause support to crack.”
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
