Bitcoin slipped in early Asia trading on Tuesday, falling as much as 2.3% to $63,414 by 9 a.m. in Singapore – its lowest level in 11 days. The second‑largest crypto, Ether, was down 3.6%.
Citadel Securities predicts the U.S. Federal Reserve will raise rates by a quarter percentage point on Wednesday. The move is seen as a surprise that could boost Chairman Kevin Warsh’s credibility in the fight against inflation. Traders estimate about a one‑in‑three chance of a hike. Higher borrowing costs tend to push investors away from risk assets such as cryptocurrencies.
Caroline Mauron, co‑founder of Orbit Markets, said Bitcoin is mainly being hit by the rising probability of a Fed hike and macro concerns about AI‑related credit risks. She warns that the next downside level is $62,000, with strong support around $60,000.
Bitcoin has shown modest gains over the past month after crashing about 50% from its October record of $126,000. However, heavy outflows from U.S.‑listed Bitcoin ETFs last week highlight the fragility of its recent recovery. The ETFs saw more than $465 million of outflows on July 23 and 24, ending a seven‑session inflow streak.
Rate‑hike worries are clouding the momentum behind the Clarity Act, a long‑awaited U.S. cryptocurrency market‑structure bill.
Tony Sycamore, an analyst at IG Australia, stated that they are holding a neutral bias on Bitcoin. He added that a sustained break and close above the 200‑day moving average (currently at $72,001) is still needed to negate medium‑term downside risks and bring a constructive technical picture to emerge.