Bitcoin tumbles below $57000 on day of Fed meeting

Bitcoin's value dropped to $56,889, an 11% decrease in one day and 20% since mid-March, diverging from the optimistic forecasts post-halving on April 19. Market uncertainty is heightened by U.S. inflation rates and the Federal Reserve's potential interest rate decisions, impacting Bitcoin and broader risk asset markets.

ETFs are experiencing outflows, with significant funds like BlackRock’s IBIT and Fidelity’s FBTC seeing no new investments or outflows continuing post-halving. Additionally, over $300 million in liquidations in Bitcoin and Ether futures are adding to the downward price pressure, influenced by various market factors including Bitcoin miners selling off their supply.