Crypto Market In Strong Bearish Grip Before FOMC, Ethereum (ETH) Price Under $3,400

March 19, 2024 John Ethereum 0

Major selling has ensued across the broader cryptocurrency market with the Bitcoin (BTC) price correcting 4% and dropping again to $65,000. At the same time, the correction in the altcoin space seems steeper with Ethereum and others correcting 7-8% and some others in double digits. The selling pressure comes just a day ahead of the crucial FOMC meeting scheduled for Wednesday.

FOMC and Central Banks Meeting

This week, on March 20, the Federal Reserve’s Federal Open Market Committee (FOMC) is scheduled to reveal its decision on interest rates, accompanied by a speech from Chairman Powell. As per CME data, there is a 99% probability that the interest rates will remain unchanged.

After the FOMC meeting, Jerome Powell’s remarks carry weight for risk assets. Investors are keen to decipher any hints he may offer. They anticipate insights into the Fed’s outlook on inflation and how it might influence the trajectory of Bitcoin.

After 17 years, the Bank of Japan has made a historic decision by raising its benchmark interest rate from -0.1% to 0-0.1%. This marks the first rate hike since 2007, officially ending the eight-year period of negative interest rates.

Ethereum Price Faces Major Selling Pressure

QCP Capital, a prominent player in the cryptocurrency market, reports a predominantly bearish sentiment prevailing in the Asian trading session. Ethereum (ETH) has notably dipped to recent lows, touching $3,382, signaling growing concerns among investors.

The fear surrounding ETH appears to be escalating, with front-end downside skew deepening to -15%, indicating a heightened apprehension among market participants. On the other hand, Ethereum whales are moving a large amount of coins to the exchanges.

Recent data analysis from Lookonchain unveils intriguing insights into a significant Ethereum (ETH) transaction executed by a savvy whale in the past two hours. The whale, wielding considerable assets, deposited 13,691 ETH, equivalent to approximately $9.06 million, into the Binance exchange, indicating a strategic move to capitalize on profits.

Meanwhile, in the realm of Bitcoin (BTC), early indications from spot ETF tracking reveal a record outflow of -$642.5 million for Grayscale Bitcoin Trust (GBTC). QCP Capital closely monitors the aggregate ETF flow numbers, highlighting that a net negative outcome would signal a distinctly bearish market sentiment.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.