©Reuters
Investing.com — Stocks fell to two-week lows on Wednesday as investors booked profits ahead of the Federal Reserve meeting, widening losses to $60,000 and leading to major publicly traded stocks Large outflows of funds from trust funds (ETFs) also weighed on the market.
After a widespread risk-off movement in currency markets saw Bitcoin soar to an all-time high of more than $73,000 in early March, traders pivoted to the dollar and took profits from Bitcoin. collected.
It hit a two-week high before the end of the Fed's meeting later in the day, which is widely expected to give further hints about when it will start cutting interest rates.
Bitcoin traded at $61,287.9 by 12:51 pm ET (1:48 p.m. Japan time). The day before, it had fallen to $60,850.9.
Adding to the downward pressure on Bitcoin, the token suffered a flash crash on cryptocurrency exchange BitMEX, dropping to $8,900 following a series of large sell orders on Tuesday. BitMEX said it is investigating possible fraud.
Bitcoin capital inflows continue, but grayscale is at issue
Data from digital asset management firm CoinShares shows that its recently approved ETFs continue to garner investor interest, with total inflows of $2.86 billion into Bitcoin-related investment products in the past week. It was revealed earlier this week.
However, Grayscale Bitcoin Trust (BTC) (NYSE:) continued to lose a whopping $1.25 billion over the past week. As a result, the fund manager's assets under management have fallen by about $2 billion over the past week, increasing selling pressure on Bitcoin.
Still, Bitcoin has continued to rise about 50% since the start of 2024, seeing heavy buying following the Securities and Exchange Commission's approval of spot ETFs in the U.S. market.
Expectations for a token halving event, in which the rate of new Bitcoin creation is halved every four years, are also expected to support the cryptocurrency. The halving event is scheduled to be held in April.
Analysts said Bitcoin's current decline provides an opportunity to buy Bitcoin ahead of the halving.
