Bitcoin Slumps to $63,075 Amid Hawkish Fed Decision and Spot ETF Outflows

Bitcoin's price has dropped to approximately $63,075 after experiencing a decline of 3.8% over the past week.

The sudden drop is attributed to the U.S. Federal Reserve's decision to hold its benchmark interest rate steady at 3.50%-3.75%, which was interpreted as a hawkish move by investors.

This 'hawkish hold' has led to investor caution and risk aversion, pushing the Fear Index into 'Fear' territory with a score of 37 on CoinMarketCap's CMC Crypto Fear & Greed Index.

Furthermore, the sustained outflows from spot ETFs have added to the downward pressure, with $526.65 million flowing out over four consecutive trading days from July 23 to 28.