Bitcoin dropped by 1.6% to $83,191.20 on Monday morning, continuing the downward trend as traders exercise caution ahead of the U.S. Federal Reserve meeting.

Key Influences Behind Bitcoin’s Decline

1. Federal Reserve’s Interest Rate Decision

   • The Fed is expected to keep interest rates steady as its policy meeting approaches.
   • Market watchers are particularly keen to hear the Fed’s views on recent tariff talks and their potential implications for both inflation and economic growth.

2. Ongoing Trade and Economic Uncertainty

   • In December 2024, Bitcoin surged past $108,000 after the election of Donald Trump, buoyed by expectations of favorable crypto regulations.
   • However, a shift in the Fed’s stance and rising trade tensions have since subdued market enthusiasm.

3. Overall Market Sentiment

   • Traders are eagerly awaiting insights from the Fed on how ongoing trade issues might influence monetary policy and the broader economic landscape.

21Shares to Liquidate Crypto ETFs

In another concerning development, 21Shares has decided to liquidate two of its ETFs by March 28:

• ARK 21Shares Active Bitcoin Ethereum Strategy ETF (NYSE: ARKY)
• ARK 21Shares Active On-Chain Bitcoin Strategy ETF (NYSE: ARKC)

Trading for both ETFs will cease on March 27, and shareholders will receive cash distributions based on their holdings.

Conclusion

As Bitcoin contends with downward pressure from tariff uncertainties and a potentially hawkish Fed, investors should navigate market dynamics with caution. Monitoring relevant updates will be key in identifying the best course of action moving forward.