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Bitcoin Drops as Traders Brace for Federal Reserve Decision

Bitcoin (BTC) fell on Monday, extending its weekly decline as investors remained cautious ahead of the U.S. Federal Reserve’s interest rate decision later this week.

  • Bitcoin Price: Down 1.6% to $83,191.20 by 01:57 ET (05:57 GMT)
  • Weekly Performance: Over 1% loss

Crypto Markets on Edge Amid Fed Decision and Tariff Concerns

  • The Federal Reserve’s policy meeting (March 18-19) is expected to keep interest rates steady, but investors are closely watching for any commentary on economic conditions and inflation.
  • Market participants are also analyzing President Donald Trump’s tariff policies, which could impact inflation outlooks and future monetary policy.
  • In December 2024, Bitcoin surged past $108,000 following Trump’s election victory, fueled by expectations of crypto-friendly regulations.
  • However, the Fed’s hawkish stance and ongoing trade tensions have since dampened enthusiasm in the crypto market.

21Shares to Liquidate Two Crypto ETFs

  • Crypto asset manager 21Shares announced the closure of two ETFs amid the market downturn:
    • ARK 21Shares Active Bitcoin Ethereum Strategy ETF (NYSE: ARKY)
    • ARK 21Shares Active On-Chain Bitcoin Strategy ETF (NYSE: ARKC)
  • Trading will stop on March 27, and shareholders will receive cash distributions after liquidation.
  • Despite the closures, 21Shares and ARK Investment Management reaffirmed their commitment to expanding regulated crypto products in the U.S. market.

Broader Crypto Market Performance

  • Ethereum (ETH): Down 1.8% to $1,897.36
  • XRP: Dropped 2.4% to $2.3343
  • Solana (SOL): Fell 5.1%
  • Cardano (ADA): Lost 4.4%
  • Polygon (MATIC): Slipped 2.1%
  • Dogecoin (DOGE): Down 2.4%
  • Trump-themed token ($TRUMP): Dropped 5.8%

With uncertainty surrounding monetary policy, tariffs, and economic growth, crypto traders are treading cautiously ahead of the Fed’s next move.

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