Bitcoin Suffers Rate Hike Jitters, Falls to 11-Day Low

Bitcoin's price took a hit in early Asia trading on July 28 as investors grew anxious about the prospect of higher interest rates from the US Federal Reserve. The largest cryptocurrency fell by up to 2.3% to $63,414 by 9am in Singapore, its lowest level in 11 days.

The second-largest token Ether was down 3.6% during the same period. Citadel Securities expects a surprise rate hike of a quarter percentage point on July 29, which would strengthen Chairman Kevin Warsh's credibility in the battle against inflation.

Traders see a roughly one-in-three chance of a rate hike, and rising borrowing costs tend to drive investors away from risk assets such as cryptocurrencies. Caroline Mauron, co-founder of Orbit Markets, attributed Bitcoin's decline to 'macro concerns about AI-related credit risks.'