The cryptocurrency market is facing significant selling pressure, with Bitcoin (BTC) falling over 5% to $65,000, leading the general market downturn. Ethereum (ETH) and other altcoins are facing even steeper declines of 7-8%, with some altcoins experiencing double-digit losses. The sell-off wave arrived just one day before the Fed’s interest rate decision on March 20, increasing market uncertainty.
Markets Await Fed Interest Rate Decision
With the upcoming Fed interest rate decision and expected significant statements from Fed Chairman Jerome Powell, global markets, including the cryptocurrency market, are focused on March 20.
Despite CME data indicating a 99% probability that interest rates will remain unchanged, investors are waiting for Powell’s statements to learn about the Fed’s approach to inflation and its potential impact on the price trajectory of cryptocurrencies, especially Bitcoin.
Furthermore, the Bank of Japan‘s historic move to raise its benchmark interest rate from -0.1% to 0-0.1%, marking its first interest rate hike since 2007, has also contributed to the panic in the markets. With this move, the BoJ ended its eight-year negative interest rate period.
Ethereum Faces Intense Selling Pressure
Amid a predominantly downward trend during the Asian session, Ethereum’s ETH fell to its recent low of $3,257, increasing concerns among investors. The fear surrounding ETH is combined with a -15% deepening front-end downward skew, reflecting the growing anxiety among market participants.
On the other hand, it is observed that Ethereum whales are transferring large amounts of ETH to exchanges. Recent data from Lookonchain points to a significant Ethereum transaction where a crypto whale deposited approximately $9.06 million worth of 13,691 ETH into the Binance exchange. This activity suggests a move towards panic-induced profit-taking amid market uncertainty.
Additionally, the latest data on flows in spot ETFs paints a negative picture. Close monitoring by QCP Capital reveals a record outflow of $642.5 million from the Grayscale Bitcoin Trust (GBTC). This substantial negative outflow indicates an increase in market uncertainty and a significant trend in market sentiment.
