Bitcoin fell by 1.6% to $83,191.20 on Monday, extending its previous week's losses as investors adopted a cautious stance ahead of the upcoming U.S. Federal Reserve meeting.

Key Factors Driving Bitcoin's Decline

1. Federal Reserve Interest Rate Decision

   • The Federal Reserve is widely expected to maintain interest rates during its upcoming policy meeting on March 18-19.
   • Market participants are closely watching the Fed's commentary on Donald Trump's recent tariff policies and their potential impact on inflation and economic growth.

2. Trade and Economic Uncertainty

   • In December 2024, Bitcoin surged past $108,000 following Trump's election victory, driven by optimism over anticipated crypto-friendly regulations and the creation of a national Bitcoin reserve.
   • However, the Fed's hawkish stance during its December 2024 meeting and Trump's escalating trade tensions have since cooled investor enthusiasm.

3. Market Sentiment

   • Investors are awaiting the Fed's insights on how ongoing trade disputes may shape monetary policy and the broader economic outlook.

21Shares to Liquidate Crypto ETFs

Adding to market concerns, 21Shares, a leading crypto asset manager, announced plans to liquidate two of its ETFs by March 28:

• ARK 21Shares Active Bitcoin Ethereum Strategy ETF (NYSE: ARKY)
• ARK 21Shares Active On-Chain Bitcoin Strategy ETF (NYSE: ARKC)

Both ETFs will stop trading on March 27, with shareholders set to receive cash distributions based on their holdings.

Tracking Bitcoin's Performance Using FMP APIs

To stay informed about Bitcoin's price movements and related news, leverage these key FMP APIs:

✅ Crypto News API — Access real-time updates on Bitcoin, ETFs, and crypto-related market developments.
✅ Full Quote List Crypto API — Track live price movements and key metrics for Bitcoin and other cryptocurrencies.

Conclusion

With Bitcoin facing downward pressure from tariff uncertainties and a hawkish Fed, investors must closely monitor economic developments and market sentiment. Utilizing reliable data sources like FMP APIs can provide actionable insights to navigate Bitcoin's volatile landscape.