Bitcoin's price continues its volatile journey, plunging by a concerning 17.5% and hitting a low of $60,760. This downward trajectory has Bitcoin enthusiasts preparing for potential financial turbulence, heightening fears of a fresh market downturn with diminishing support for the cryptocurrency giant.

Several key factors contribute to the drop in Bitcoin's price, including significant outflows from US-based Bitcoin spot exchange-traded funds (ETFs) and the highly anticipated Federal Reserve decision on interest rates scheduled for March 20, posing immediate risks.

The crucial Federal Reserve meeting has created widespread anticipation, with its outcome expected to have a significant impact on various risk assets. Despite the near certainty of an unchanged interest rate following the meeting, all eyes will be on Federal Reserve Chair Jerome Powell's subsequent commentary. The likelihood of an abrupt shift back to rate cuts, known as a "pivot," is estimated at just 1% for March and 9.1% for the next meeting in May.

Financial analysts are also closely monitoring Bitcoin's spot ETFs, which have witnessed net outflows for two consecutive days, as per data from the UK-based investment firm, Farside. With minimal inflows to other ETFs and a sharp decline of nearly $500 million over the past two days, the financial outlook appears bleak.

Trading firm QCP Capital warns of potentially dire implications for Bitcoin's price strength amidst these unsettling developments. While Bitcoin remains a risky digital asset, its sustained interest suggests potential for recovery, although the path ahead seems challenging for the time being.