Bitcoin Slumps Near $63K Amid Chip Stock Sell-Offs and Fed Uncertainty

Bitcoin's price slipped to near $63,000 on Wednesday due to a combination of factors including chip stock sell-offs, ETF outflows, and Federal Reserve uncertainty.

Akshat Siddhant, Lead quant analyst at Mudrex, noted that the decline was triggered by a sharp sell-off in Asian semiconductor stocks, which spilled over into Wall Street and the crypto market.

More than $510 million in liquidations occurred as investors took profits from their Bitcoin holdings, while continued outflows from US spot Bitcoin ETFs further weakened sentiment.

Nischal Shetty, founder of WazirX, said that the crypto market has entered a phase of heightened caution as investors reposition ahead of the Federal Reserve's policy decision.