Crypto

Bitcoin Market Experiences Volatility Amid Rate Cut Speculation

Bitcoin and the broader cryptocurrency market have been volatile recently, with Bitcoin experiencing significant price fluctuations, outflows from ETFs, and uncertainty surrounding potential rate cuts by the Federal Reserve.

At a glance

  • Bitcoin experienced significant volatility, falling below $61,000 and registering a 15% weekly loss.
  • QCP Capital analysis suggests the Bitcoin bull market is not over, despite net outflows and a large single-day outflow of $326.2 million.
  • Market trends may be influenced by a pre-FOMC position adjustment, with potential rate cuts by the Federal Reserve in June.
  • Bitcoin rebounded above $63,000 and surged to over $68,000, with optimism from analysts like Willy Woo.
  • Total market capitalization has dropped to $2.6 trillion, with $236 billion exiting crypto markets since the peak on March 13.

The details

Bitcoin and the cryptocurrency markets have experienced significant volatility in recent days.

Bitcoin fell below $61,000, triggering a market-wide correction.

Despite hitting new all-time highs, Bitcoin registered a 15% weekly loss.

QCP Capital Analysis

However, analysis from QCP Capital suggests that the Bitcoin bull market is not over.

Spot Bitcoin ETF inflows peaked at $1.045 million on March 12, but net inflows have since dwindled, mirroring a decline in spot prices.

QCP Capital reported a net outflow of $326.2 million overnight, marking the largest single-day outflow recorded.

Market Trends and Federal Reserve

Despite these outflows, Bitcoin rebounded above $63,000 and even surged to over $68,000.

Market trends may signify a pre-FOMC position adjustment, as the Federal Reserve is anticipated to make three rate reductions for the year.

The initial rate cut is expected in June, but continued inflationary pressures could lead the Fed to reconsider its stance.

A hawkish shift in policy could exert downward pressure on Bitcoin spot prices.

Crypto analyst Willy Woo expressed confidence that Bitcoin will rebound soon, viewing the recent pullback as a temporary halt in Bitcoin’s journey to a new peak.

Regarding Bitcoin options and derivatives, a big expiry event is expected to induce more volatility, with around 25,300 Bitcoin contracts expiring on March 22. The tranche of expiring Bitcoin derivatives has a notional value of $1.8 billion, with a put/call ratio of 0.57. Market sentiment was encouraged by the Fed’s lack of interest rate adjustments, leading to BTC recovering previous losses and rallying more than 10%.

Total market capitalization has dropped to $2.6 trillion, with $236 billion exiting crypto markets since the peak on March 13. Bitcoin was trading at $66,218 and Ethereum at $3,515 during the Friday morning Asian trading session, with altcoins mostly in the red except for Binance Coin (BNB) and XRP.

In terms of United States spot Bitcoin exchange-traded funds (ETFs), there have been three consecutive days of total net outflows, with $261.5 million exiting the funds on March 20. However, the price of BTC has recovered, rising to $67,000 from under $61,000, indicating a 9% increase from the previous day.

The three-day net outflows have reached $742 million, with substantial withdrawals from funds such as the Grayscale Bitcoin Trust and the Invesco Galaxy Bitcoin ETF.

Despite the outflows, market observers remain optimistic about Bitcoin’s resilience to ETF influences.

Historically, Bitcoin tends to fall in the lead-up to halving events, but it has rebounded recently, reclaiming the $67,000 level and signaling a bullish trend.

BTC responded positively to commentary from the Federal Reserve, which hinted at the possibility of rate cuts later in the year, boosting Bitcoin sentiment.

Overall, Bitcoin and the broader crypto market are experiencing fluctuations and uncertainties, but many remain optimistic about the long-term prospects of the cryptocurrency.

Article X-ray

Facts attribution

This section links each of the article’s facts back to its original source.

If you suspect false information in the article, you can use this section to investigate where it came from.

cryptopotato.com
– Bitcoin fell below $61,000 triggering a market-wide correction
– Bitcoin registered 15% in weekly losses after hitting new all-time highs
– QCP Capital analysis suggests Bitcoin bull market is not over
– Spot Bitcoin ETF inflows peaked at $1.045 million on March 12
– Net inflows have dwindled, mirroring a decline in spot prices
– QCP Capital reported a net outflow of $326.2 million overnight
– Largest single-day outflow recorded
– Bitcoin plunged to lows of 60,770 before rebounding above 63,000
– Bitcoin surged to over $68,000 despite outflows
– QCP Capital stated the bull market is not over
– Market trend may signify a pre-FOMC position adjustment
– Federal Reserve anticipated three rate reductions for the year
– Market sentiment anticipates initial rate cut in June
– Continued inflationary pressures may lead to Fed reconsidering stance
– Hawkish shift in policy could exert downward pressure on Bitcoin spot prices
– Crypto analyst Willy Woo expressed confidence in Bitcoin rebounding soon
– Recent pullback seen as a halt in Bitcoin’s journey to a new peak
cryptopotato.com
– Bitcoin and crypto markets experienced volatility, with Bitcoin falling to $61,500 on March 20 before recovering slightly.
– A big options expiry event is expected to induce more volatility, with around 25,300 Bitcoin contracts expiring on March 22.
– The tranche of expiring Bitcoin derivatives on March 22 has a notional value of $1.8 billion, with a put/call ratio of 0.57.
– There is almost $1 billion in open interest at the $65,000 strike price for Bitcoin options.
– Market sentiment was encouraged by the Fed’s lack of interest rate adjustments, with BTC recovering previous losses and rallying more than 10%.
– Around 253,000 Ethereum contracts are set to expire on the same day, with a notional value of $885 million and a put/call ratio of 0.51.
– The most open interest for Ethereum is at the $4,000 strike price, with $659 million, and $564 million in open interest at $3,000.
– Total market capitalization has dropped to $2.6 trillion, with $236 billion exiting crypto markets since the peak on March 13.
– Bitcoin was trading at $66,218 and Ethereum at $3,515 during the Friday morning Asian trading session, with altcoins mostly in the red except for Binance Coin (BNB) and XRP.
cryptopotato.com
– United States spot Bitcoin exchange-traded funds (ETFs) experienced three consecutive days of total net outflows, with $261.5 million exiting the funds on March 20.
– The price of BTC has recovered, rising from under $61,000 to $67,000, indicating a 9% increase from the previous day.
– According to Farside Investors data, the three-day net outflows have reached $742 million, with March 18 and 19 witnessing respective net outflows of $154.3 million and $326.2 million.
– On March 20, a substantial withdrawal occurred from the Grayscale Bitcoin Trust (GBTC), resulting in $386.6 million exiting the fund, driving the outflows.
– The Invesco Galaxy Bitcoin ETF (BTCO) saw $10.2 million departing the fund, exceeding minor inflows from the remaining eight approved ETFs.
РBlackRock’s iShares Bitcoin Trust (IBIT) had its second-lowest net inflow day at $49.3 million, while the Fidelity Wise Origin Bitcoin Fund (FBTC) had a relatively weak inflow day at $12.9 million.
– This marks the second-highest net outflow day for the 10 ETFs, only surpassed by the $326.2 million outflow observed on March 19.
– Despite the outflows, market observers remain optimistic.
– Bitcoin showed resilience to ETF influences, with commentators suggesting a newfound strength.
– Samson Mow, CEO of Jan3, predicted that Bitcoin ETF outflows would eventually become inflows.
– Bitcoin declined from its record high of $73.8K on March 14, coinciding with the final month before the halving event.
– Historical data shows BTC typically falls in the lead-up to the halving, a pattern repeating in the final 30 days before the event.
– Bitcoin rebounded from the recent decline, reclaiming the $67,000 level from $61,000, signaling a bullish trend.
– Despite approaching the weekly imbalance zone between $59,111 and $53,120, Bitcoin did not retest these levels, suggesting a spike in buying pressure.
– BTC responded positively to commentary from the United States Federal Reserve, which opted to maintain interest rates at current levels.
– Following the Federal Open Market Committee (FOMC) meeting, Fed Chair Jerome Powell hinted at the possibility of rate cuts later in the year, boosting Bitcoin sentiment.
– As BTC rebounds, the broader crypto market is also surging, with some altcoins outperforming Bitcoin.
– Cryptocurrencies like Floki, Pepe, Bitcoin Cash, Ethereum, and Dogecoin surged 38%, 14%, 17%, 10%, and 14%, respectively.

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