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Bitcoin falls amid fears of a higher Fed rate path

The decline coincided with additional US-listed spot Bitcoin ETF outflows, totaling $476.9 million since Thursday.

Reported · Written up by our desk · Market Structure

Bitcoin slid as investors pulled back from digital assets amid growing concerns that interest rates could rise further, pressuring risk sentiment.

The largest cryptocurrency fell as much as 2.9% to $63,018, its lowest level in 11 days, while Ether dropped as much as 4.1%. Bitcoin later pared losses to be down 2.5% around 6:10 a.m. New York time.

Bloomberg cited traders expecting roughly a one-in-three chance of a Federal Reserve rate hike on Wednesday, with rising borrowing costs typically weighing on risk assets like cryptocurrencies.

Heavy outflows from US-listed Bitcoin exchange-traded funds added to the pressure, with investors withdrawing $11.6 million on Monday and pulling a total $476.9 million since Thursday, according to LiveMint Markets. Meanwhile, commentary from market participants pointed to $62,000 as a downside level to watch and noted the broader fragility of Bitcoin’s rebound.

Latest closeBitcoin $64,748.92 ▲1.3%

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