# Bitcoin's Bearish Plunge *Author: Jack Inabinet* *Published: Mar 19, 2024* *Source: https://www.bankless.com/bitcoins-bearish-plunge* --- **Bitcoin's slide is erasing weeks of gains.** Meanwhile, the total crypto market cap faces its largest string of declines since spot BTC ETF approval proved to be a sell the news event. *Will bulls come to the rescue, or is there more downside to come?* Outflows from the Grayscale Bitcoin Trust (GBTC) are speeding. Yesterday, they [amounted](https://x.com/BitMEXResearch/status/1770004721371062491?s=20) to $642.5M, surpassing the prior record of $640.5M set on January 22, causing a net outflow from all BTC spot ETFs of $154.4B. After yesterday’s performance, GBTC has now experienced the most outflows of *any* ETF since the March 2009 stock market lows set in the wake of the Global Financial Crisis, a dismal performance record Grayscale now hopes to reverse by [promising](https://www.cnbc.com/2024/03/19/grayscale-ceo-says-gbtc-bitcoin-etf-fees-will-come-down-over-time.html) to lower its exorbitantly high fees over time. > Grayscale Bitcoin Trust w/ most outflows of *any* ETF since March 2009 stock market low...Only took 2 months.via [@Todd_Sohn](https://twitter.com/Todd_Sohn?ref_src=twsrc%5Etfw) [pic.twitter.com/vX6dtcd6sR](https://t.co/vX6dtcd6sR)— Nate Geraci (@NateGeraci) [March 19, 2024](https://twitter.com/NateGeraci/status/1770074375368151539?ref_src=twsrc%5Etfw)  The sell pressure from these flows was reflected in crypto prices yesterday, with Bitcoin experiencing a peak-to-trough decline of nearly 9% off the Monday opening of US stock markets. Alongside the dip in prices has come [liquidations](https://www.coinglass.com/LiquidationData). A total of $635M in leveraged trades were forcibly closed over the past 24 hours, with 80% of them coming from the long end, allowing [funding rates](https://www.coinglass.com/FundingRateHeatMap) across the board to reset to normalcy and providing a supportive environment for traders looking to take new longs. Despite the dip down in BTC, new hopes for institutional crypto adoption are emerging after a $1.4T Japanese state pension fund – the world’s largest – announced that it is seeking information on Bitcoin as it looks to diversify its portfolio. > BREAKING: The world's biggest pension fund, Japan's $1.4 Trillion Government Pension Investment fund, is looking into buying [#Bitcoin](https://twitter.com/hashtag/Bitcoin?src=hash&ref_src=twsrc%5Etfw) [pic.twitter.com/45Fc1ipHXs](https://t.co/45Fc1ipHXs)— Bitcoin Archive (@BTC_Archive) [March 19, 2024](https://twitter.com/BTC_Archive/status/1770015154521903407?ref_src=twsrc%5Etfw) Markets are demonstrating strong risk-on sentiment, making it clear that we are in a bull market. However, it should be noted that a standard bull market correction of 30% would send BTC as low as $51k, providing room for further downside. Tomorrow’s Federal Reserve interest rate decision could be a major volatility catalyst for markets, as recent hot inflation prints could push the Federal Open Markets Committee (FOMC) to adopt a more hawkish policy stance than in past months. This shift would delay market participants’ expectations for rate cuts and pour water on a risk rally that has continued uninterrupted since last October. The likelihood of a rate reduction this month has plummeted to a mere 1%, a drastic decrease from the 90% probability of beginning in March that markets had priced in at last year's end. > We are now 24 hours out from the long anticipated March Fed meeting.Odds of an interest rate cut at this meeting are down to just 1%.3 months ago, markets saw a 90% chance that interest rate cuts would begin this month.Odds of a rate cut at the May 2024 Fed meeting are down… [pic.twitter.com/UOC9AJyxcd](https://t.co/UOC9AJyxcd)— The Kobeissi Letter (@KobeissiLetter) [March 19, 2024](https://twitter.com/KobeissiLetter/status/1770133719925326058?ref_src=twsrc%5Etfw)   --- *This article is brought to you by [Figure](https://www.bankless.com/sponsor/figure-1767965878?ref=bitcoins-bearish-plunge)*