The market is being dominated by bears as the FOMC meeting approaches, causing Ethereum to experience further losses.
The Bank of Japan has recently decided to raise interest rates, marking the first increase in 17 years. Meanwhile, the Federal Open Market Committee (FOMC) has maintained interest rates.
The concerns surrounding the correction in Ethereum’s price continue to intensify as it approaches the $3,000 mark.
The broader cryptocurrency market experienced a significant sell-off, resulting in a 4% correction in the price of Bitcoin (BTC), causing it to drop back to $65,000. Meanwhile, altcoins saw even more significant corrections, with Ethereum and other assets experiencing drops of 7-8% and some even plunging into double-digit losses. This selling pressure aligns with the day before the much-anticipated FOMC meeting set for Wednesday.
FOMC and Central Banks Meeting
On March 20, the Federal Reserve’s Federal Open Market Committee (FOMC) is set to announce its decision on interest rates, along with a speech from Chairman Powell. According to CME data, the interest rates will likely stay the same.
Following the FOMC meeting, the remarks made by Jerome Powell hold significant importance for risk assets. Investors are eagerly trying to interpret any clues he may provide. They expect to gain insights into the Federal Reserve’s perspective on inflation and its potential impact on the future of Bitcoin.
After 17 years, the Bank of Japan has made a significant decision by raising its benchmark interest rate from -0.1% to 0-0.1%. This signifies the inaugural rate increase since 2007, effectively concluding the eight years of adverse interest rates.
Ethereum Price Encounters Significant Selling Pressure
QCP Capital, a significant player in the cryptocurrency market, notes a prevailing bearish sentiment during the Asian trading session. Ethereum (ETH) has experienced a substantial drop to recent lows, reaching $3,382, raising concerns among investors.
There is a growing fear surrounding ETH, as the downside skew on the front end has deepened to -15%. This suggests that market participants are becoming increasingly apprehensive. Meanwhile, influential players have transferred many Ethereum coins to exchanges.
A recent data analysis from Lookonchain reveals exciting insights into a notable Ethereum (ETH) transaction carried out by a knowledgeable individual in the last two hours. A wealthy individual with significant financial resources transferred 13,691 ETH, valued at around $9.06 million, to the Binance exchange, suggesting a calculated decision to maximize potential gains.
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 world of Bitcoin (BTC), initial reports on spot ETF tracking show a significant outflow of -$642.5 million for Grayscale Bitcoin Trust (GBTC). QCP Capital closely monitors the aggregate ETF flow numbers, emphasizing that a net negative outcome would indicate a bearish market sentiment.
