Bitcoin Tumbles to 10-Day Low Near $63,000 Amid Tech Rout and Fed Uncertainty

Bitcoin (BTC) slid to a 10-day low on Tuesday, approaching the $63,000 level as a sell-off in artificial intelligence-related technology stocks and investor caution ahead of a key Federal Reserve interest rate decision weighed on risk assets.

By 9:19 AM ET, the world's largest cryptocurrency by market capitalization had fallen 2.7% to trade at $63,506.8, its lowest price point since July 17, 2024, according to data from Investing.com. The decline reflects a broader risk-off sentiment spilling over from equity markets into digital assets.

Tech Sell-Off and Fed Jitters

The downturn in crypto coincided with a sharp drop in Asian technology stocks, particularly AI-related chipmakers. Concerns over the sustainability of massive AI infrastructure spending and increased competition have pressured major firms like Samsung and SK Hynix, dampening investor appetite for growth-oriented assets.

Markets are also bracing for the conclusion of the Federal Reserve's two-day policy meeting on Wednesday. According to the CME FedWatch Tool, traders see a roughly 38% probability of an unexpected 25-basis-point rate hike this week, while the odds of a hike in September have risen above 80%. Higher interest rates typically reduce the appeal of non-yielding assets like Bitcoin.

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Market Headwinds and Regulatory Delays

Recent attempts at a sustained rally have been hampered by persistent capital outflows from U.S.-listed spot Bitcoin exchange-traded funds (ETFs), which have added to the selling pressure. The broader crypto market also felt the impact, with other major tokens including Ethereum (ETH), XRP, and Solana (SOL) posting significant losses.

Adding to the uncertain environment, the U.S. Senate has reportedly paused deliberations on the "Clarity for Digital Assets Market Act" to focus on other legislative priorities. This delay pushes back the timeline for establishing a comprehensive regulatory framework for the industry in the United States.