Bitcoin fell sharply in early Asian trading on Tuesday, dropping as much as 2.3% to $63,414 by 9 a.m.
The sell-off was driven by growing investor anxiety over the prospect of higher interest rates, with markets increasingly pricing in a hawkish stance from the Federal Reserve ahead of its upcoming policy decision.
This latest decline extends a broader downtrend for Bitcoin, which has recently retreated to its lowest level in 21 months, trading near $58,000 during earlier Asian session hours.
The digital asset’s weakness is not isolated; it tracks a broad-based selloff in US technology stocks, reflecting a recalibration of risk appetite across global markets.
Investors are growing concerned that persistent inflationary pressures may force the Fed to maintain restrictive monetary policy for longer than previously anticipated, thereby reducing the liquidity that has fueled the crypto rally.
This latest decline extends a broader downtrend for Bitcoin, which has recently retreated to its lowest level in 21 months, trading near $58,000 during earlier Asian session hours.
The sustained pressure highlights a loss of confidence among investors, who are now prioritizing safety over speculative growth assets amid uncertainty over the macroeconomic outlook.