- Bitcoin faces a 17% decline, falling from its all-time high of $73,750 to $60,087.
- Over $638 million in crypto assets, with $228 million in BTC alone, were liquidated.
- Anticipation grows for the FOMC meeting with expectations of a steady federal funds rate of 5.25%–5.5%.
Bitcoin (BTC) has displayed a notable downturn, succumbing to pressures as it dropped by a significant 7% today, March 20. This downward spiral marks the second consecutive day of outflows for Bitcoin ETFs, with $326 million exiting the market, more than doubling the previous day’s figures.
The BTC price decline partly stems from the imminent decision by the US Federal Reserve on interest rates. The Federal Open Market Committee (FOMC) meeting on March 19–20 is highly anticipated, with expectations that the federal funds rate will remain steady between 5.25% and 5.5%. Fed Chair Jerome Powell will announce the final decision on March 20 at 6:00 p.m. UTC. That holds implications for both traditional and cryptocurrency markets.
Bitcoin Extends Correction
Adding to the alarm, over $638 million worth of holdings, including $228 million in Bitcoin alone, have been liquidated in the past 24 hours. This rapid sell-off has sent Bitcoin plummeting by over 17% from its all-time high of $73,750 to $60,807. However, the price of BTC is now hovering around the $62,551 mark.
If the selling pressure continues and BTC fails to breach the $63,500 resistance zone, it could signal further downward movement. In that case, Bitcoin may approach its 50-day moving average of approximately $58,250, with the $53,780 level standing as the next significant support.
Despite the current bearish sentiment, there remains a glimmer of hope for Bitcoin bulls. If the cryptocurrency reclaims the $64,000 resistance zone, it could pave the way for a potential rally toward $67,300 and beyond, with $70,000 emerging as a compelling target for those betting on a resurgence in prices.
