Bitcoin Falls Amid Rising Rate Hike Probabilities and Macro Concerns

Bitcoin weakened in early Asia trading on Tuesday as investors grew cautious about higher US interest rates. The largest cryptocurrency fell to its lowest level in 11 days, down 2.3% to $63,414 by 9am Singapore time.

Ether, the second-largest cryptocurrency, also declined 3.6%. Market concerns intensified after Citadel Securities predicted a 25 basis point rate hike at the Federal Reserve's upcoming meeting.

Caroline Mauron of Orbit Markets attributed Bitcoin's decline to rising probability of a Fed hike and macro concerns about AI-related credit risks.

The next level to watch on the downside is $62,000, with strong support expected around $60,000.

Recent outflows from US-listed Bitcoin exchange-traded funds highlighted continued market uncertainty. Investors remained cautious on Bitcoin, according to Tony Sycamore of IG Australia, who said a sustained move above the 200-day moving average at around $72,001 would be needed to improve the cryptocurrency's medium-term outlook.