# Bitcoin Falls Amid ETF Outflows and Federal Reserve Rate Decision
Bitcoin prices are under pressure due to significant outflows from an ETF and market anticipation ahead of the Federal Reserve’s upcoming interest rate decision.
As of 6:20 p.m. on the 20th, Bitcoin was trading at $62,835, a 1.8% drop from 24 hours earlier. Bitcoin’s price in South Korean won fell to the 92 million KRW range. The cryptocurrency has been in a downward trend since hitting its all-time high of $73,000, leading some analysts to suggest that Bitcoin may have peaked.
A key factor in Bitcoin’s decline is the waning demand for the Bitcoin spot ETF launched on January 11. Despite recording a total net inflow of $11.7 billion, the ETF experienced substantial outflows on Tuesday, with $326 million being withdrawn from the Grayscale ETF.
Market participants are also closely watching the Federal Reserve’s interest rate decision. Speculation has emerged that the Fed might delay rate cuts and reduce the number of cuts anticipated, adding to market uncertainty.
Tony Sycamore, an analyst at IG Australia, told Bloomberg, “Bitcoin’s price correction is partially related to the Federal Reserve outlook. Investors who bought above $60,000 are being tested as ETF inflows stall.”
According to CoinGecko, the cryptocurrency market capitalization has fallen by approximately $460 billion after reaching a peak of $2.9 trillion. Ethereum, Binance Coin (BNB), and Dogecoin have also posted losses during this period.
K33 Research pointed out that leveraged positions in Bitcoin perpetual futures could become a significant factor. The potential for forced liquidations on bullish bets remains a concern. K33 Research warned, “The risk of sharp price declines due to the liquidation of leverage positions is still considerable.”
Data from Coinglass indicated that over $300 million in long positions were liquidated in the past 24 hours.
