BTC's short-term weakness is due to risk-off sentiment ahead of the US FOMC rate decision, and downward corrections are a buying opportunity.

"The recent decline in bitcoin's price is due to investors' risk-off sentiment ahead of the US Federal Open Market Committee's (FOMC) rate decision meeting," said Vetle Lunde, Senior Analyst at crypto research firm K33 Research. "While the market unanimously expects the Federal Reserve (Fed) to keep interest rates unchanged, the continued failure to control inflation could delay the decision to cut rates. Therefore, it is worth keeping an eye on the dot plot at the FOMC meeting. Joel Kruger, an analyst at fintech firm LMAX Group, added: "While the correlation between cryptocurrencies and traditional financial assets remains low, the risk-off sentiment from the Fed's hawkish stance could spill over into the crypto market."

Despite this analysis, Wall Street investment bank Bernstein sees an opportunity to buy the dips, "with BTC down more than 10% in the past week." "The correction is temporary and healthy and should provide a buying opportunity ahead of BTC's halving. Another correction may occur before the halving, after which it will regain strength. In this cycle, which could last until next year, BTC could reach $150,000."

Meanwhile, data compiled by HODL15Capital shows that BTC outflows reached $4.44 billion on March 19 (local time), down from $6.43 billion the day before, but still significant. The outflow is being blamed for the previous day's decline in the cryptocurrency market, including bitcoin, so much attention is being paid to the size of the outflow.