Bitcoin Plunges Below $63,000 Amid Rate Hike Fears
Bitcoin prices have fallen below $63,000 as investors grow increasingly concerned about the possibility of a Federal Reserve interest rate hike. This development has sent shockwaves through the cryptocurrency market, with Bitcoin now trading at its lowest level in 11 days.
The weakness in digital assets appears to reflect growing caution that the Fed could raise its benchmark rate this week. Citadel Securities expects the central bank to lift rates by 0.25 percentage point on Wednesday, with markets pricing in roughly a one-in-three chance of an increase at this meeting.
Caroline Mauron, co-founder of Orbit Markets, stated that Bitcoin is under pressure due to 'the likelihood of a Fed rate hike' and broader macroeconomic concerns over AI-related credit risk. She noted that $62,000 and $60,000 are key support levels for the cryptocurrency.
US spot Bitcoin ETFs recorded net outflows of more than $465 million on July 23 and July 24, which has added to the downward pressure on Bitcoin prices. Tony Sycamore, an analyst at IG Australia, remains neutral on Bitcoin but believes that breaking decisively above its 200-day moving average at $72,001 is crucial for a more positive technical trend.