Bitcoin Declines Further as the Fed Shifts Policy

Bitcoin continued to fall sharply over the past 24 hours, as the Fed's policies impacted the value of the US dollar (DXY).

Azcnews Bitcoin Declines Further As The Fed Shifts Policy

Bitcoin plunged to a low of $92,500 yesterday, triggering a massive wave of liquidations in the cryptocurrency market.

The digital currency recorded a new low for 2025 as Treasury yields surged and the US dollar index (DXY) hit a record high, reflecting investor concerns about the Federal Reserve’s monetary policy.

DXY started the week down 0.92%, after which Bitcoin suddenly jumped to $102,000. However, DXY quickly reversed course and peaked at 109.37 – its highest level since November 2022. The rise in DXY put a lot of pressure on Bitcoin, causing the value of the digital currency to decline. Analysts are concerned that yield curve control could become the focus of attention in the market again.

Mvrv Ratio 7d
Mvrv Ratio 7d

Bitcoin’s 7-day Market Value to Realized Value (MVRV) has now dropped to -2.63%, marking a sharp decline from 5.6% just two days ago. The MVRV metric is used to gauge whether Bitcoin holders are making or losing money by comparing the current value to the average purchase price.

Read more: Bank of America Officially Adopts XRP

A negative MVRV value indicates that, on average, Bitcoin holders are making a loss, which could be a sign of capitulation or an undervalued market.

Based on historical trends, Bitcoin’s 7-day MVRV could fall further, to around -5% to -6% before recovering, as it did between December 20 and 23. If this pattern repeats, Bitcoin is likely to face further selling pressure in the short term, even testing lower support levels.

(2 votes)

3.5/5

(2 votes)

Latest

Okx Suspends Dex Aggregation Services

News | Editor Choice | Policy & Regulations

OKX Suspends DEX Aggregation Services After Being Exploited by Bybit Hackers

OKX suspends its DEX aggregation services after being linked to the $1.5 billion Bybit hack, amid an EU investigation into money laundering activities and regulatory violations.

Join Bingx Launchpool To Receive Free $dcl

News | Editor Choice

Join BingX Launchpool to receive free $DCL!

BingX has just launched its 9th project on the BingX Launchpool platform - Deelink Protocol (DCL). The total reward value is up to 66,666,667 DCL, and the program will end at 7:00 AM on March 18, 2025.

Debiex Fined $2.5 Million For Pig Butchering Crypto Scam

News | Editor Choice | Policy & Regulations

Debiex Fined $2.5 Million for ‘Pig Butchering’ Crypto Scam

Debiex was fined $2.5 million for a "pig butchering" cryptocurrency scam, stealing $2.3 million from victims by impersonating romantic partners on social media to trick them into investing.

Pi Network Launches Domain Auction System

News | Editor Choice | Pi Network

PI Network Launches Domain Auction System, Updates PI Price on March 17, 2025

PI Network officially celebrated its 6th anniversary on March 14, 2025, while launching the .pi domain auction system to enhance the appeal of its ecosystem.

Has Bitcoin's 4 Year Cycle Ended

News | Bitcoin | Editor Choice

Has Bitcoin’s 4-Year Cycle Ended?

Bitcoin is approaching a critical phase as it moves within an ascending wedge pattern, with key resistance at $86,400 and growing institutional interest shaping its post-halving trajectory.