Bitcoin fell under $63,000 and reached its lowest level in 11 days as traders grew more cautious ahead of this week’s Federal Reserve decision. The move came amid renewed concern that the US central bank could still raise interest rates, a scenario that has weighed on risk assets including cryptocurrencies.

According to Bloomberg, Bitcoin dropped as much as 2.3% to $63,414, while Ether lost about 3.6%. The decline also followed heavy withdrawals from US spot Bitcoin exchange-traded funds, adding another source of pressure after the market’s partial rebound from last year’s high.

Fed worries return to the forefront

Market sentiment weakened as expectations for tighter US monetary policy picked up again. Citadel Securities is expecting the Federal Reserve to deliver a 0.25 percentage point rate increase on Wednesday, while broader market pricing implied roughly a one-in-three chance of a hike at this meeting.

That possibility has been enough to unsettle crypto traders, with analysts linking the latest downturn in Bitcoin to rising rate-hike expectations. Higher rates generally tend to reduce appetite for riskier assets, and the prospect of another move by the Fed has added to the defensive tone across the market.

Bitcoin and Ether both move lower

Bloomberg reported that Bitcoin’s slide took it to an 11-day low, briefly pushing the asset below the $63,000 mark. Ether also declined, falling about 3.6% during the same period as weakness spread across major digital assets.

Analysts said pressure on Bitcoin has also been amplified by concerns tied to AI-related credit risk. While the report did not quantify that risk, it cited it as an additional factor contributing to the strain already building from the macroeconomic backdrop.

ETF outflows add to the strain

Beyond rate concerns, Bitcoin has been dealing with renewed selling pressure linked to US spot Bitcoin ETFs. The products recorded net outflows of more than $465 million across July 23 and 24, a notable drain on sentiment after the cryptocurrency had staged only a partial recovery from its high last year.

Those withdrawals suggest that institutional demand through the ETF channel has weakened at a time when the market is already sensitive to policy signals from the Fed. Together, the outflows and the central bank uncertainty have helped keep Bitcoin on the defensive.

Levels traders are watching next

Analysts identified $62,000 as the next support level for Bitcoin, with $60,000 seen as a stronger support zone if selling continues. On the upside, they said the medium-term technical picture would need a decisive move back above the 200-day moving average, currently at $72,001, to become more constructive.

The next confirmed catalyst is the Federal Reserve’s policy decision this week. Until then, crypto markets appear likely to remain focused on incoming signals about rates and whether recent ETF outflows persist.

Source: en.bloomingbit.io