Soon after the United States declared its PPI inflation data<\/a> for the month of February on Thursday, March 14, Bitcoin and the broader cryptocurrency market faced selling pressure. As of press time, Bitcoin is trading 6.95% down at a price of $68,195 with a market cap of $1.342 trillion.<\/p>\n As the market anticipates the upcoming Federal Open Market Committee (FOMC) meeting scheduled for March 20, traders are bracing for a potentially volatile weekend. QCP Capital, a prominent trading firm, reported an increase in perpetual swap open interest over the last 24 hours, signaling heightened activity in the market.<\/p>\n <\/p>\n Risk reversals for both Bitcoin (BTC) and Ethereum (ETH) are currently skewed towards put options<\/a> in the near term, indicating a cautious sentiment among investors. Despite this, QCP Capital noted<\/a> strong demand for year-end BTC call options with strike prices ranging from 100k to 150k, suggesting bullish expectations for the cryptocurrency\u2019s performance by the end of the year.<\/p>\n Questions arise about the possibility of a short-term market dip before a potential rally towards BTC reaching 150k by year-end. Perpetual funding rates and the forward curve remain elevated, prompting QCP Capital to view spot-forward spreads as an attractive opportunity for a 20-30% risk-free trade.<\/p>\n <\/p>\n Despite the potential for short-term sell-offs, analysts believe that these fluctuations are unlikely to have a lasting impact on the overall uptrend, especially with the sustained demand for daily spot BTC ETFs<\/a>. Investors are closely monitoring market developments ahead of the FOMC meeting, which could further influence trading activity in the coming days.<\/p>\n <\/p>\n Data from Greeks.Live suggests that the prevailing narrative surrounding ETF inflows appears to be undergoing a shift, as indicated by significant declines in implied volatility (IV) across all major terms in recent days. Additionally, a lack of clear direction in block options orders suggests a weakening market sentiment.<\/p>\n <\/p>\n Market analysts have noted that the current sentiment resembles a cooling phase, which historically precedes the start of a bull market, reported Greeks.Live.<\/p>\n Furthermore, the Bitcoin ETF daily inflows were the lowest in March on Thursday. As per data<\/a> from SoSoValue, March 14 witnessed significant movements in Bitcoin spot ETFs, with notable inflows and outflows. Grayscale\u2019s ETF GBTC experienced a substantial net outflow of $257 million within a single day. Conversely, BlackRock\u2019s IBIT ETF emerged as the frontrunner, recording a remarkable net inflow of $345 million, contributing to its historical net inflow reaching $12.37 billion.<\/p>\n <\/p>\n \u2713 Share:<\/p>\nBitcoin (BTC) Investors Preparing for Volatility Before FOMC<\/h3>\n
The Shifting Market Sentiment<\/h3>\n
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