BTC Suddenly Loses Power! What's Going On In The Crypto Market?


 Bitcoin failed to break the $30K mark as the BTC price slipped back below $28,000 ahead of the highly anticipated FOMC meeting.

Altcoins have seen more declines with DOT, MATIC, SOL and other altcoins falling up to 7-8% within a day. Since the banking crisis worsened in the US and spilled over into Europe, bitcoin's price performance has been stellar. The cryptocurrency jumped from $20,000 to $28,500 in just over a week and hit a 9-month high. The BTC Fear and Greed Index also surged to new highs.

The Fear and Greed Index, a metric showing overall sentiment towards bitcoin is now at 66, the highest level since November 2021. One factor behind the mostly bullish investor perspective could be the impressive price performance of the major cryptocurrency, which has risen nearly 30 % for last week.

BTC managed to hit $28,500 after news that UBS had agreed to buy struggling banking giant Credit Suisse. However, the asset started to retrace in the following hours and declined to $27,919.77.

Market players are now focusing on the speech of Jerome Powell, Chairman of the US Federal Reserve. The next FOMC meeting is scheduled for March 23, and the banking crisis could prevent the central bank from further raising interest rates.

Prominent billionaires, such as Elon Musk and Bill Ackman, believe the Fed should return to the monetary strategy practiced during Covid-19 by lowering rates by half a point.