Amid uncertainties caused by new economic policies and the aggressive US tariff policy, the cryptocurrency market has experienced a downturn. Let's examine the current market situation in detail.
Bitcoin and Ethereum Price Drop
Yesterday, the Bitcoin market witnessed a significant single-day decline of 2.09%. As of the close on March 16, the price stood at $82,577.24. In the last 24 hours, the BTC market has dropped by 1.9%, reaching $82,888.44 - at least 0.37% above yesterday’s close.
The Ethereum market exhibited similar behavior, falling from $1,935.77 to $1,886.92, marking a severe single-day drop of 2.52%. Over the past 24 hours, ETH has declined by 2.4%, standing at $1,888.69 - slightly above the previous closing price.
US Fed's Impact on Stock Markets
In this week's FOMC meeting, the Fed is less likely to change the federal funds rate, which currently stands between 4.25% and 4.5%. In February, the US inflation rate dropped from 3% to 2.8%, and TEForcast expects it to decrease to 2.5% in March.
Recent tariffs imposed by President Donald Trump on imports from China, Mexico, and Canada raise the prospect of increased inflation. As the Fed waits to measure the full impact of the new tariff policy, interest rate changes may be postponed.
Uncertainty continues to overshadow US markets, with indices such as Dow Jones, S&P 500, and Nasdaq Composite declining, signaling cautious investor sentiment.
Trends in Crypto Derivatives
In the last 24 hours, the cryptocurrency market has seen a 3.1% drop, with most of the top-ten cryptos experiencing losses. Bitcoin fell by 1.9%, Ethereum by 2.4%, XRP by 1.9%, Solana by 4.6%, and Cardano by 3%.
Despite $253 million in liquidations, leverage levels in crypto futures remain high, with funding rates stabilizing at neutral, indicating mixed market sentiment.
In conclusion, crypto traders are looking for catalysts like Fed policy decisions or institutional investment signals to determine the market's next move.
Cryptocurrency markets remain under pressure as they await Fed decisions and adapt to new US economic conditions. Traders are searching for signals to clarify future trends.
