Bitcoin Slides Towards $63K as Investors Derisk Ahead of Fed Decision

Bitcoin slid towards $63,000 on Tuesday as investors derisked ahead of the Federal Reserve's decision on Wednesday. The market is positioning for a hawkish hold from the Fed, with nearly an 80% chance that rates will be higher by September.

The selling was concentrated in institutional and US spot Bitcoin ETFs, which saw $465 million of net outflows across July 23-24. BlackRock's IBIT fund accounted for nearly $415 million of this exit, signaling a targeted macro-driven exit rather than a broad loss of conviction in Bitcoin.

Despite the selling, Polkadot and tokens on the XRP Ledger ecosystem led gains, with some pockets of rotation in the market. The direction is set less by any single coin than by whether Wednesday's statement reads as a pause or a warning from the Fed.