Bitcoin Consolidates Below $84,000 Ahead of Fed Meeting as Focus Shifts to Altcoins

On March 17, the price of the leading cryptocurrency failed to break resistance near $84,500. However, the subsequent pullback was moderate due to a “buy the dip” sentiment, as reported by CoinDesk.

Following last week’s sell-off amid recession fears and “trade wars,” the dynamics have become more balanced.

Augustin Fan, Head of Analytics at SignalPlus, highlighted that buyers are supported by relatively fair valuations of companies outside the most capitalized names, as well as expectations of no negative surprises in key macroeconomic statistics.

Nick Rak, Director at LVRG Research, noted an increase in altcoin turnover following the purchase of MNT and AVAX cryptocurrencies by World Liberty Financial, associated with the family of U.S. President Donald Trump.

“This could be a sign of a shift in focus to other digital assets that can yield higher returns than Bitcoin or Ethereum,” the expert suggested.

QCP Capital noted the cryptocurrency fear and greed index remains in the worry zone, considering the broader negativity in stock markets.

This did not prevent Bitcoin from avoiding a new major wave of sales, experts indicated.

Asia Colour — 17 Mar 25

1/ Over the weekend, a $BTC whale opened a $400M short position at $84K with a 40x leverage. Traders attempted to force liquidation, which needed just a 2.5% move, but the position is still open—racking up $400K in funding fees.

— QCP (@QCPgroup) March 17, 2025

Statements by U.S. Treasury Secretary Scott Bessent, who, like Trump, did not rule out a recession, put pressure on the quotes.

According to experts, the upcoming March 19 meeting of the Fed will introduce volatility, as traders will seek any hints regarding the resumption of policy easing amid uncertainty due to White House actions.

Earlier, Wells Fargo forecasted a Bitcoin recovery in the second quarter if the stable correlation with the stock market persists.

Previously, options traders placed $550 million on further weakening of digital gold in March. Some analysts suggest that the price could drop to $70,000 before a subsequent rise.