Bitcoin ETF net outflows reach nearly $500M, leading to a 17.5% plunge in BTC price.

Bitcoin (BTC) faced the risk of a significant decline below $61,000 on March 20, with analysts warning that support levels could be breached. BTC/USD continued to experience selling pressure, falling to a low of $60,760 on Bitstamp, representing a 17.5% drop from its all-time high. Various factors contributed to the weakness in BTC price, including outflows from US spot Bitcoin exchange-traded funds (ETFs) and the upcoming decision on interest rates by the Federal Reserve. While the Fed’s decision is expected to remain unchanged, market participants are closely monitoring Fed Chair Jerome Powell’s commentary for any impact on risk assets. The chances of a rate cut in the near term are low, with the next FOMC meeting in May having a 9.1% probability of a pivot. However, the June meeting has a higher chance of rate cuts at 55%. Spot ETFs also experienced net outflows for the second consecutive day, raising concerns about the strength of BTC price. The Grayscale Bitcoin Trust (GBTC) saw reduced outflows compared to the previous day, but the lack of significant inflows to other ETF products resulted in lackluster statistics. These developments have led to speculation about the potential impact on BTC price strength. It’s important to note that this article does not provide investment advice, and readers are advised to conduct their own research before making any investment decisions.