Bitcoin Price Drops to $63K Amid Tech Sector Selloff and Fed Rate Hike Concerns

Bitcoin's price dropped over 3% on Tuesday to around $63,494, its lowest point since July 17. The move came after a sharp selloff in AI-linked tech stocks, led by South Korea's KOSPI falling more than 10%. This decline in the tech sector carried over into cryptocurrency markets, with Ethereum down 4.43%, Solana dropping 4.41%, and XRP losing 4.89%.

The Federal Reserve is also a concern for markets, as traders are pricing in a 38% chance of a surprise rate hike this week. Expectations for a September hike have climbed above 80%. Higher interest rates typically reduce the appeal of assets like Bitcoin that don't generate yield.

Despite these challenges, on-chain data from Santiment showed that wallets holding between 10 and 10,000 BTC added nearly 20,000 BTC in just eight days. This accumulation by larger investors is seen as a positive sign for the market, with supply shifting toward stronger hands.