Markets News Report
March 20, 2024

Crypto Market Faces Pressure Amid $670M Liquidations, Pre-halving Bitcoin Retraces and Upcoming Fed Meeting

In Brief

Bitcoin and the wider crypto market faced significant pressure, continuing the downward trend observed last week.

Crypto Market Faces Pressure Amid $670M Liquidations, Pre-halving Bitcoin Retraces and Upcoming Fed Meeting

Decentralized cryptocurrency Bitcoin (BTC) and the wider cryptocurrency market have faced significant pressure, continuing the downward trend observed last week. Bitcoin’s price has declined by another 6% over the last 24 hours, testing support at $61,000, while Ethereum (ETH) has dropped by 8%, testing support at $3,000. Altcoins are experiencing a deeper correction, with investors anticipating a potential rebound.

According to data from Coinglass, approximately $670 million worth of assets were liquidated within the last 24 hours, constituting one of the most substantial liquidation events seen in the past two weeks. Nearly $500 million in long positions and $170 million in short positions were liquidated.

The broader cryptocurrency market has experienced a significant decline, losing approximately $600 billion since reaching a peak of $2.9 trillion last week. Cryptocurrencies, including Ethereum, Binance Chain (BNB), and Dogecoin (DOGE), recorded losses during this period.

Analysts at K33 Research suggest that the liquidation of bullish derivative positions may not have concluded yet, potentially presenting a significant hurdle to any rapid recovery in the digital asset market. According to Anders Helseth, head of research and Vetle Lunde, senior analyst at K33 Research, there remains a significant risk for continued heightened downward volatility resulting from long liquidations.

Keep track of cryptocurrency distributions in our Airdrops Calendar.

Bitcoin Hovers Near Two-Week Low Amid Declining ETF Inflows, Pre-halving Retraces and Fed Rate Cut Uncertainty

Bitcoin remained near its lowest level in roughly two weeks, exhibiting weak performance influenced by declining inflows into the spot Bitcoin ETFs, witnessing $326.2 million in outflows yesterday, marking the largest outflow since their introduction. 

Furthermore, Bitcoin has entered a zone of retraces that historically preceded its halving event. However, according to the Rekt Capital analyst, the ongoing correction reflecting a decrease of -16% is still considered “insignificant” compared to four declines of more than 20% observed in 2023.

Another factor contributing to the restrained market sentiment surrounding cryptocurrency is the decreasing likelihood of interest-rate cuts in the United States. It is anticipated that during the upcoming meeting this week, the Federal Reserve will refrain from indicating an immediate rate cut. During the two-day policy meeting of the Federal Open Market Committee, interest rates are expected to remain within the range of 5.25% to 5.5%, marking a two-decade high initially reached in July.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

More articles
Alisa Davidson
Alisa Davidson

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

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