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Bitcoin price dropped to $61,874 at the time of writing, with bulls trying to rally the price from the dip. The decline occurring about 40 minutes before the daily close suggests that this price correction could deepen. So, what’s the next stop for Bitcoin?
Why Is Bitcoin Falling?
The Fed’s interest rate decision will be announced in a few hours, and if there are statements related to the stickiness of inflation, keeping interest rates at the peak for a longer period, or even increasing them slightly, it could ruin everything. Investors were expecting a 150bp cut from the Fed for 2024 at the beginning of the year, but it was confirmed two months before the March meeting that there would be no cut.
BTC now seems eager to move towards the support area between $60,000 and $59,000 after closing below $66,000. The downturn, triggered by negativity on the macroeconomic front and accelerated by high investor profitability, could lead to greater losses in altcoins. The highest investor profitability seen in the last three years is pushing those who want to retain their gains to sell, reminiscent of the up to 40% drop during the halving period (2016, 2020 cycle).
Moreover, sales through the ETF channel are strong. GBTC outflows were over $400 million on the second day of the week, and the weakening demand in other ETFs suggests we have started to retreat from the peak we were about to climb, at least for a certain part of the way.
