Bitcoin Tumbles Amid Liquidity Crunch and Hawkish Fed Expectations

Bitcoin (BTCUSD) experienced a decline of 2.49% on July 28, falling to $63,315.67.

This drop is largely attributed to tightening global liquidity and shifting institutional risk sentiment ahead of the Federal Reserve's mid-summer policy decision.

The anticipation of a potentially hawkish stance from central bank officials led to increased US Treasury yields, which put downward pressure on the entire digital asset complex.

Institutional activity through spot Bitcoin ETFs has slowed, with net outflows indicating a temporary exhaustion of the recent accumulation phase.