Bitcoin breached the $62,000 mark amid concerns about the FED's decision
Bitcoin (BTC) price had a moment of recovery near the $65,000 mark before adjusting to $62,000 on the morning of March 20.
The upcoming meeting of the US Federal Reserve (Fed) that ends on Wednesday is casting a shadow over the cryptocurrency market, deciding whether the correction is over or not.
Bitcoin has had a series of consecutive days setting new peaks in recent weeks. However, BTC fell more than 15% from nearly $74,000 on March 14 to below $62,000 early Tuesday, dragging other altcoins down.
The adjustment comes after stronger-than-expected US inflation data last week. This could cause the central bank to limit its ability to loosen monetary policy and delay cutting interest rates.
"The market is in complete agreement that interest rates will remain unchanged but will pay close attention to adjustments to the dot plot, as cuts could be delayed on a basis that inflation remains high, " said Vetle Lunde, senior analyst at digital asset analysis firm K33 Research.
The dot plot is Fed committee members' forecasts for interest rates next year and gives investors a glimpse into policymakers' expectations.
The drop in Bitcoin price was accompanied by weak inflows into US-listed Bitcoin ETFs over the past few days. Lunde said part of the reason is that investors are cautious ahead of the end of the Federal Open Market Committee (FOMC) meeting.
🎯 If the Fed issues a hawkish message, this could limit investors' risk appetite for assets like cryptocurrencies, affecting prices and possibly prolonging the correction.
Source; Tradecoinvn.com
