\n<\/p>\n
\n\t\t\t\t\t\t\t\t\tOne of the key reasons could be the sharp reversal in Bitcoin ETF flows. \t\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n
It was less than a week ago when bitcoin was riding high, trading at a six-week peak at $76,000. It had recovered $13,000 since the war in the Middle East began, and was the best performing asset during this time of new uncertainty (aside from oil, perhaps).<\/p>\n
However, the subsequent rejection was quite painful, especially over the past 24 hours, and bitcoin found itself dropping toward $68,000 earlier today. As such, it had lost $8,000 in mere days, and here are some of the possible reasons.<\/p>\n
Although essentially all investors and experts were expecting no changes to the key interest rates in the US from the Federal Reserve during its second meeting of the year, Chair Powell\u2019s hawkish speech after the event brought some more pain for risk-on assets like crypto.<\/p>\n
After his second-to-last FOMC meeting, the current Chair said<\/a> the central bank remains concerned about stubbornly elevated inflation, especially since the war in the Middle East pushed oil prices up by double digits.<\/p>\n \u201cThe rate forecast is conditional on the performance of the economy, so if we don\u2019t see that progress, then you won\u2019t see the rate cut,\u201d Powell said.<\/p>\n \u201cFOMC events act as volatility catalysts, but their impact depends on the underlying risk regime,\u201d stated Swissblock on Thursday, adding, \u201cIn high-risk environments, FOMC days tend to trigger rejection or accelerate downside.\u201d<\/p>\n<\/blockquote>\n According to predictions markets as well as some futures-implied products focused on the Fed\u2019s policies, the interest rate cuts will be paused for over a year. The Kobeissi Letter, in a post from today, outlined the significance of such a potential development, if true, of course.<\/p>\n Talk about a turn of events:<\/p>\n The futures-implied BASE CASE now shows the Fed pausing interest rate cuts until July 2027.<\/p>\n To put this into perspective, the debate in late-2025 was whether the Fed would CUT rates 3 or 4 times in 2026.<\/p>\n Last week, markets briefly showed a 50%\u2026<\/p>\n \u2014 The Kobeissi Letter (@KobeissiLetter) March 21, 2026<\/a><\/p>\n<\/blockquote>\n Obviously, the ongoing and quickly escalating tension in the Middle East is another major reason behind BTC\u2019s recent correction. This was more than evident on Sunday morning when the cryptocurrency fell by a few grand in minutes after US President Trump threatened<\/a> to \u2018obliterate\u2019 Iran\u2019s power plants if the country doesn\u2019t safely reopen the Strait of Hormuz.<\/p>\n The POTUS gave his enemy 48 hours to allow ships to pass through the key region; otherwise, they will experience another wave of countless attacks.<\/p>\n The spot Bitcoin ETFs<\/a> enjoyed a healthy streak of seven consecutive days in the green, from March 9 to March 17. Its price peak at $76,000 came just as the inflows tapped $200 million on Tuesday, but the three days that followed were quite the opposite.<\/p>\n Investors pulled out $163.52 million on Wednesday, another $90.19 million on Thursday, and $52.11 million on Friday. Although the week ended with a net positive of $95.18 million, the last three trading days saw more than $300 million being pulled out, which coincided with the asset\u2019s price correction.<\/p>\n \u00a0<\/p>\n LIMITED OFFER for CryptoPotato readers at Bybit: Use this link<\/a> to register and open a $500 FREE position on any coin!<\/b><\/p>\n<\/div>\n<\/div>\n <\/p><\/div>\n\n
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The War Itself<\/h2>\n
You may also like:<\/h3>\n
ETF Reversal<\/h2>\n
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![<\/a>Spot Bitcoin ETFs Net Flows. Source: SoSoValue<\/figcaption><\/figure>\n\u00a0<\/p>\n\nSPECIAL OFFER (Exclusive)<\/span><\/center>\nBinance Free $600 (CryptoPotato Exclusive): Use this link<\/a> to register a new account and receive $600 exclusive welcome offer on Binance<\/b> (full details<\/a>).<\/p>\nLIMITED OFFER for CryptoPotato readers at Bybit: Use this link<\/a> to register and open a $500 FREE position on any coin!<\/b><\/p>\n<\/div>\n<\/div>\n<\/p><\/div>\n](\"https:\/\/cryptopotato.com\/wp-content\/uploads\/2026\/03\/Screenshot-2026-03-22-151444.png\"){kind=link}