Key Takeaways
Bitcoin slipped to around $70000 as pressure from rising energy prices and uncertainty in macro condition raise caution
Oil surged, BRENT hitting $114 and Oman Crude nearing $150 fuelling concerns of potential inflation
The Federal Reserve held rates steady, around 3.5% -3.75%, boosting the dollar and pausing the rate cuts
Gold plummets 4.9% on the day but is trading at $4650/ oz as of writing
Bitcoin Drops, Uncertainty Pricing in Markets
Bitcoin dropped to the $70K level on Thursday 19 March, extending losses to longs amid a broader flight from risk to caution
The largest cryptocurrency declined about 1.6%, while Ethereum dropped by 1.9% to $2129 range tracking weakness in risk assets
Macroeconomic pressures on the asset may have intensified driven by surging energy prices and tighter financial market condition expectations
Oil Surges Amid Inflation Pressures
Energy markets rallied on the day as a result of geopolitical tensions in the Middle East
Brent crude oil rose to $115 per barrel
Oman crude oil sharp spike to $150 per barrel
European Natural gas futures surged 25%
The price rally follows a result of attacks on energy infrastructure, issuing concerns of global supply disruption and rising inflation which weigh heavily on riskier investments like crypto
The Fed Keep Rates Unchanged, Dollar Strengthening
The Federal Reserve held rates steady during their March meeting since lower interest rates and surging energy price always raise inflation
Higher rates and stronger dollar reduce liquidity and demand for speculative assets from investors
Gold Dips to $4500/oz as Liquidations Over $600M in Past 24 Hours
Capital outflows from gold may shift to other assets upon emerging stronger dollar
$600 million in liquidations over past 24 hours. Majority were long positions
Market sentiment is cautious once more, with volatility rising again. Traders are positioning for further uncertainty amid macro risks.
Geopolitical tensions, rising energy costs and tighter financial conditions will drive volatility across crypto markets in the next few months
