Crypto Market Under Strong Bearish Grip Before FOMC, Ethereum (ETH) Price Under $3,400 (2024)

A significant sell-off has impacted the broader cryptocurrency market, leading to a 4% correction in the price of Bitcoin (BTC), which fell back to $65,000. Meanwhile, altcoins experienced even steeper corrections, with Ethereum and other assets dropping by 7-8%, and some plunging into double-digit losses. This selling pressure coincides with the day before the highly anticipated 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.

A smart whale deposited 13,691 $ETH($9.06M) to #Binance in the past 2 hours to take profits.

This whale started trading $ETH on Aug 9, 2023 and made a total of 5 trades.

He lost money in the first trade and won the last 4 trades, with a total profit of $16.9M!… pic.twitter.com/5DtE4ilWMF

— Lookonchain (@lookonchain) March 19, 2024

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.