As Net Withdrawals From BTC ETF Approach $500m, The Price Of Bitcoin Drops 17.5%

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As Bitcoin BTC tickers dropped $64,341 and faced a further break through $61,000 on March 20, analysis warned that support would “crack”. Data from Cointelegraph Markets Pro and TradingView were used to track another night of BTC price decreases; according to Bitstamp, these losses have so far bottomed at $60,760.

Currently, down 17.5% from its peak, selling pressure on BTC/USD persisted due to many significant obstacles. These include withdrawals from US spot Bitcoin exchange-traded funds (ETFs) and the Federal Reserve’s interest rate announcement on March 20, as Cointelegraph reported.

BTC Data Remains Unimpressive Due To Poor Inflows 

The Federal Open Market Committee’s (FOMC) decision is almost certain, but risk assets should closely monitor Fed Chair Jerome Powell’s following remarks. Part of a recent analysis on X (previously Twitter) by trading site The Kobeissi Letter stated, “With the Fed meeting less than 24 hours away, it’s unlikely the Fed changes rates tomorrow.

But with the current developments, all eyes will be on direction. We continue to believe that it would be premature to change course. According to the most recent projections from CME Group’s FedWatch Tool, there is just a 1% likelihood of a “pivot,” or a return to rate decreases, for the FOMC meeting in May and a 9.1% chance for March 20. Meanwhile, data from UK-based investment firm Farside shows that net outflows from spot ETFs occurred for a second day in a row. Although the withdrawal from the Grayscale Bitcoin Trust (GBTC) was less than the record $642 million that occurred on March 19, the data were unimpressive due to the poor inflows to the other ETF products.