Investor interest has dropped significantly, Bitcoin is difficult to maintain. Powell's words plunged 7%

On Monday (March 22), the price of Bitcoin plummeted 7% to around $54,000, trading volume was sluggish, and foreign exchange inflows continued to decline.

(Source: Coindesk)

Alessandro Andreotti, a Bitcoin over-the-counter broker, said: "There are not many fluctuations, and the price has been stable at the $56,000 to $58,000 mark." According to data from blockchain analysis company Glassnode, as of March 21, there were less than 2.44 million bitcoins available for trading on exchanges, the lowest number since August 2018. The reduction in exchange Bitcoin balances is seen as a bullish sign, with fewer holders ready to take profits or sell cryptocurrencies, indicating minimal selling pressure in the near term.
But as Bitcoin inflows to exchanges continue to decline, it also suggests that the persistently high price volatility is driven primarily by “speculative demand” rather than any fundamental factors, Philip Gradwell, chief economist at blockchain analysis firm Chainalysis, wrote in a March 19 newsletter.
Cryptocurrency fund inflows fell about 58% to $99 million last week. The decline in investor interest in digital asset funds may reflect uncertainty about the price of Bitcoin. "Since the highs in Bitcoin prices and increased volatility in February, we have seen a steady decline in investor interest," said a report from digital asset management company CoinShares. "We have also seen Bitcoin investment product trading volume fall to $713 million per day last week, compared to $1.1 billion per day in 2021," CoinShares wrote. Fund flow data also shows regional differences. Fund inflows in the United States are slowing, while investors in Europe and Canada have maintained interest.

(Source: Coinshares)

In a virtual panel discussion on digital banks hosted by the Bank for International Settlements, Federal Reserve Chairman Powell said that cryptocurrencies are "not really useful value stores," and in the following hours, the price of cryptocurrencies suddenly fell to $55,685.09. Andreotti also believes that the craze for non-fungible tokens (NFTs) has caused huge disruptions, especially given the large amount of media coverage. "The focus has almost completely shifted to NFTs," he said. "That's the focus of all attention right now." (FX168 Finance Network)