Bitcoin is starting the week in recovery mode after a turbulent weekend that resulted in significant losses. Investors are looking ahead to important macroeconomic events this week, particularly the decisions of the U.S. Federal Reserve, which could impact both cryptocurrency and traditional risk assets. The leading cryptocurrency is struggling to regain its previous all-time highs due to ongoing selling pressure, prompting investors to closely monitor the situation.

Bitcoin's Current Challenges and the Battle Against Inflation

This week is critical as major macroeconomic events unfold, with both the cryptocurrency and risk assets awaiting signals from the Federal Reserve. The battle against inflation continues, with recent data indicating that inflationary pressures are still prevalent.

Bitcoin is approaching its next block subsidy halving, a significant event in the cryptocurrency world, with some investors speculating on a potential pre-halving retracement.

Bitcoin's Value and Market Conditions

Bitcoin faced a challenging weekend, dropping to its lowest levels since March 6 but showing signs of recovery, nearly reaching $69,000 before encountering fresh losses at the weekly close. As of now, Bitcoin is trading around $68,000.

Unusually high selling pressure over the weekend, typically a period of low institutional trading, has been attributed to a single hedge fund unwinding its position. Despite this, Bitcoin managed to close the week near $68,400, marking its second-highest weekly close ever.

Market Data and the Impact of the "Pre-Halving Retrace"

Recent market data reflects a significant "flush" across exchanges following near two-week lows, with long liquidations totaling over $300 million. The weekend also saw a reset in open interest and funding rates, with ongoing debate on how the halving event will affect Bitcoin's price behavior.

Federal Reserve's Decisions and Bitcoin's Outlook

The upcoming week is crucial for risk assets, with focus on the Federal Reserve's decision on interest rates and Chair Jerome Powell's commentary. The next FOMC meeting concluding on March 20 is expected to influence risk asset volatility. Despite market sentiment leaning towards "extreme greed," some long-term holders have been taking profits, distributing a substantial amount of BTC over the past month.