© Reuters
Investing.com– fell to a two-week low on Wednesday, deepening losses to $60,000, as investors locked in profits ahead of a Federal Reserve meeting, while heavy capital outflows from a major exchange-traded fund bag also weighed.
A broader risk-off move in currency markets saw traders pivot toward the dollar while taking profits on Bitcoin after it hit all-time highs of more than $73,000 in early March.
It hit a two-week high ahead of the conclusion of a Fed meeting later in the day, where the central bank is expected to offer more signals on when it plans to start cutting interest rates.
Bitcoin was trading at $61,287.9 at 00:51 ET (01:48 GMT). It had fallen as low as $60,850.9 earlier in the day.
Adding to the downward pressure on Bitcoin, the token saw a sudden drop on the BitMEX crypto exchange, where it sank as low as $8,900 following a series of massive sell orders on Tuesday. BitMEX said it was investigating possible irregularities.
Bitcoin Capital Inflows Continue, But Grayscale Is a Point of Contention
Data from digital asset manager CoinShares showed earlier this week that Bitcoin-linked investment products saw total inflows of $2.86 billion last week, as its newly approved ETFs continued to attract investor interest.
But the Grayscale Bitcoin Trust (BTC) (NYSE:) saw sustained outflows of a whopping $1.25 billion over the past week. This caused the fund manager's assets under management to plunge by approximately $2 billion in the past week, adding to selling pressure on Bitcoin.
Still, Bitcoin remained up around 50% so far in 2024, having seen massive buying after the Securities and Exchange Commission approved spot ETFs in US markets.
Anticipation of the token halving event, which halves the rate at which new Bitcoin is generated every four years, is also expected to support the cryptocurrency. The halving event will take place in April.
Analysts said Bitcoin's current weakness presented a buying opportunity for the token ahead of its halving.
