TLDR
- Bitcoin dropped nearly 3% this week, falling from a high of $76,000 to hover around $70,000
- The Federal Reserve kept rates unchanged and signaled only one cut in 2026, hurting risk appetite
- Citi slashed its BTC price target from $143,000 to $112,000, citing stalling crypto legislation
- Strategy bought another 22,337 BTC, bringing total holdings to 761,068 BTC
- Morgan Stanley filed a second amended S-1 for a spot Bitcoin ETF, to trade under ticker MSBT
Bitcoin started the week on solid footing, climbing to $76,000 on Tuesday — its highest level since early February. That momentum didn’t last long.
The Federal Reserve held interest rates steady at 3.50%–3.75% on Wednesday for the second meeting in a row. Fed Chair Jerome Powell warned that the ongoing Iran conflict would push inflation higher, making rate cuts less likely this year. The Fed now projects only one rate cut in 2026 and one in 2027, while raising its PCE inflation outlook to 2.7%.
That hawkish stance hit risk assets hard. Bitcoin fell below $69,000 on Thursday before recovering to around $70,843 on Friday — still down nearly 3% on the week.
Fed Policy Weighs on Prices
Aurelie Barthere, Principal Research Analyst at Nansen, noted the Fed revised up both its inflation and growth projections. She said the press conference focused heavily on inflation, and the tone was “rather hawkish.”
Rising oil prices, triggered by Israel’s targeting of Iran’s South Pars gas field, added pressure. Gracy Chen, CEO of Bitget, said: “Rising energy costs, delayed easing expectations, and a firmer dollar are creating a more selective investment environment.”
The $70,000 level is now the key line to watch. Analyst Iliya Kalchev of Nexo Dispatch said holding that level “invites a stabilization trade,” while losing it “reopens the path toward the next support cluster.”
Citi Cuts Forecast, Legislation Stalls
Citi analyst Alex Saunders cut his Bitcoin price target to $112,000 from $143,000. The downgrade is tied to the Clarity Act — crypto market structure legislation — stalling in Congress. Odds of it passing this year have dropped to 60% on Polymarket, down from nearly 90% in February.
President Trump posted to Truth Social: “The U.S. needs to get market structure done, ASAP. Americans should earn more money on their money.”
Despite the bearish week, Strategy’s Michael Saylor announced on Monday that his firm bought another 22,337 BTC. Total holdings now stand at 761,068 BTC, with an average purchase price of $75,696.
Bitcoin spot ETFs showed mixed flows this week. Monday and Tuesday saw inflows of $201 million and $199 million respectively, followed by outflows of $163 million and $90 million on Wednesday and Thursday.
$BTC Rising Wedge is on the verge of a breakdown 📉
Targeting sub $50k pic.twitter.com/6hUUEP6AIM
— CryptoBullet (@CryptoBullet1) March 20, 2026
Meanwhile, a chart flagged by crypto account CryptoBullet showed a rising wedge pattern on BTC, with a potential target below $50,000 if the breakdown plays out.
Morgan Stanley filed a second amended S-1 with the SEC for a spot Bitcoin ETF, to be listed on NYSE Arca under the ticker MSBT. If approved, it would be the first spot BTC ETF issued directly by a major US bank.
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