Bitcoin, XRP, SOL slump as market awaits Fed’s rate decision

The digital asset market began the week with widespread declines. Bitcoin (BTC) fell nearly 2% in 24 hours, pulling major altcoins down with it. XRP, Solana (SOL), Cardano (ADA), and Dogecoin (DOGE) experienced drops of up to 5% before recovering. However, this dip may be a minor setback before more significant market movements.

This week is crucial for global financial markets, with the Federal Reserve, inflation data, and Nvidia announcements taking center stage. Wall Street anticipates three rate cuts by year-end, with one expected in June. However, rising inflation concerns are casting doubt on a December cut.

The market's direction remains uncertain. While slower growth might prompt the Fed to cut rates, rising inflation could lead them to maintain current levels. The market has been relatively quiet since last week's tariff-related turmoil, with traders concerned about the potential for a US recession due to trade policies. This has increased the correlation between crypto and equity markets, while consumer sentiment weakens.

Key Economic Events This Week:

February Retail Sales data – Monday
February Housing Starts data – Tuesday
Fed Interest Rate Decision/Statement – Wednesday
Initial Jobless Claims data – Thursday
Philly Fed Manufacturing data – Thursday
February Existing Home Sales data –

On Wednesday, the Fed's decision will be closely watched. While rates are expected to remain unchanged at 4.25%-4.5%, the accompanying economic projections and Chair Powell's press conference could significantly impact markets. Polymarket users predict a 99% chance of no rate cut on March 20th.

Simultaneously, Nvidia CEO Jensen Huang's GTC presentation is highly anticipated, given the surge in AI chip demand. Significant announcements could further boost AI-related stocks.

Bitcoin ETFs Remain Relatively Stable

The crypto market awaits this week's economic data. The total digital asset market capitalization dipped slightly in the past 24 hours to $2.73 trillion. Bitcoin's price is down 15% over the past 30 days, but it's holding relatively steady around the $83,000 level. Despite the volatility, some investors are still looking to "buy the dip."

Analysis of Bitcoin ETF inflows and outflows reveals investor sentiment. From January 1st to February 6th, US BTC ETFs saw massive inflows of 56,802 BTC, reaching a peak of 1.177 million BTC. However, by March 14th, over 55,300 BTC ($4.58 billion) had been withdrawn.

Currently, Bitcoin ETFs hold approximately $93.25 billion in BTC (5.6% of the total BTC market cap). Blackrock's IBIT leads with $39.24 billion and 568,559 BTC, followed by Fidelity's FBTC with $11.25 billion and 194,269 BTC.

Ethereum is underperforming, down 10% in the last 7 days, while XRP has seen a 7% increase during the same period.