Bitcoin Falls to $83K Ahead of Fed Decision as Market Uncertainty Grows

Bitcoin fell 1.6% to $83,191.20 on Monday, extending last week’s 1% decline as investors turned cautious before the U.S. Federal Reserve’s interest rate decision on March 18-19. The Fed is widely expected to keep rates steady, but traders are watching for commentary on President Donald Trump’s recent tariff policies and their potential impact on inflation and economic growth.

Bitcoin previously soared past $108,000 in December 2024 following Trump’s election victory, driven by expectations of crypto-friendly regulations and a national Bitcoin reserve. However, the Fed’s hawkish stance and increasing trade tensions have since dampened investor enthusiasm. The upcoming meeting could offer key insights into how tariffs and trade policies might influence monetary policy and market sentiment.

The crypto market faced additional pressure as 21Shares announced the liquidation of two exchange-traded funds (ETFs) amid a broader downturn. The ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY) and the ARK 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC) will cease trading on March 27, with final cash distributions issued after liquidation. Despite this, 21Shares and ARK Investment Management reaffirmed their commitment to expanding regulated crypto investment products in the U.S.

Altcoins also struggled, with Ether dropping 1.8% to $1,897.36, XRP falling 2.4% to $2.3343, and Solana tumbling 5.1%. Cardano and Polygon lost 4.4% and 2.1%, respectively. Meme tokens like Dogecoin slipped 2.4%, while $TRUMP plunged 5.8%.

Crypto markets remain volatile, with traders closely monitoring the Fed’s stance on trade policy and its potential effects on the broader economy.