Bitcoin Dips Under $70K as Stocks Tumble on Hawkish Fed Hold—What’s Next?
Cryptocurrencies and stocks declined after the U.S. Federal Reserve held interest rates steady at 3.50%–3.75%, amid growing Middle East tensions and inflation risks. Bitcoin dropped over 4% to an intraday low of $69,537, while the Nikkei, gold, and the S&P 500 also fell significantly. Oil prices initially spiked but reversed to trade down 1% since the Fed's decision. Investor sentiment weakened, with prediction markets lowering the probability of Bitcoin reaching $84,000 from 63% to 50%. Large Bitcoin holders sold over $117 million worth of BTC, contributing to more than $511 million in liquidations, mostly from long positions. Experts suggest Bitcoin will likely remain in a tight range, with $70,000–$72,000 as a key support level, as ETF inflows continue. The upcoming March 27 options expiry, with significant open interest, could keep volatility low unless unexpected events occur.
