Bitcoin falls toward $63,000 as global risk selloff hits cryptocurrencies

Bitcoin and the wider cryptocurrency market traded sharply lower on Tuesday as a technology-led selloff across Asian stock markets weakened demand for riskier assets and investors turned cautious ahead of the Federal Reserve’s policy decision.

As of approximately 1:43 PM GMT, Bitcoin traded near $63,400, down about 2.8% over the previous 24 hours. The largest cryptocurrency had fallen from an intraday high near $65,550 and briefly approached $63,000 as selling pressure intensified.

Ethereum suffered heavier losses, falling about 4.1% to approximately $1,883, while Solana declined around 4.7% to $72.90.

XRP also dropped about 4.6% to $1.05, while BNB proved relatively more resilient, slipping approximately 1.1% to $566.

The total value of the cryptocurrency market fell to around $2.17 trillion, declining approximately 2.4% over 24 hours as losses spread across most major digital assets.

Asian market rout reaches crypto

The decline accelerated alongside a dramatic selloff in Asian technology shares.

South Korea’s Kospi plunged by around 10%, while Japan and Taiwan also suffered steep losses as investors sold semiconductor and artificial intelligence-related stocks.

Although cryptocurrencies operate independently from traditional stock exchanges, Bitcoin and other major tokens have increasingly behaved like high-risk technology assets during periods of market stress.

When investors reduce exposure to equities and other speculative investments, cryptocurrencies often face similar selling pressure as traders move toward cash, government bonds and other defensive assets.

Bitcoin nevertheless outperformed several major altcoins during Tuesday’s decline, reflecting its tendency to attract comparatively stronger demand when conditions across the crypto market deteriorate.

Bitcoin’s share of the total cryptocurrency market stood near 58.7%, while Ethereum represented roughly 10.4%.

Ethereum and altcoins suffer deeper losses

The heavier decline in Ethereum, Solana and XRP showed that investors were becoming less willing to hold assets carrying greater volatility than Bitcoin.

Ethereum fell more than 4% to around $1,883, underperforming Bitcoin by more than one percentage point during the 24-hour period.

The ETH-to-Bitcoin exchange rate also declined by more than 3%, indicating that Ethereum was losing value not only against the dollar but also relative to Bitcoin.

Solana dropped to approximately $72.90, down around 4.7%, while XRP fell to nearly $1.05 after losing roughly 4.6%.

The broader retreat suggested that investors were not merely taking profits in Bitcoin. Instead, capital was leaving the cryptocurrency market more widely, with higher-risk altcoins absorbing the largest losses.

Federal Reserve decision dominates sentiment

Investors were also reluctant to take large positions before the Federal Reserve concludes its monetary-policy meeting.

Cryptocurrency prices are highly sensitive to changes in U.S. interest-rate expectations because higher rates tend to strengthen the dollar and reduce the appeal of assets that do not generate interest or predictable cash flows.

Expectations that the Federal Reserve could maintain a restrictive policy stance have therefore limited demand for Bitcoin, even as geopolitical tensions in the Middle East showed signs of easing.

Lower geopolitical risk would ordinarily support speculative markets. However, on Tuesday, concerns surrounding interest rates and the global technology selloff outweighed the positive effect of easing tensions.

Bitcoin remains trapped below $65,000

Bitcoin has repeatedly struggled to maintain gains above $65,000, with each attempted recovery attracting renewed selling.

The cryptocurrency traded near $65,300 on Monday before retreating toward $63,400 on Tuesday, representing a decline of nearly $2,000 in less than a day.

The area around $63,000 has now become an important short-term level. A sustained fall below it could expose Bitcoin to further losses, particularly if the Federal Reserve delivers a more restrictive message than investors expect.

Conversely, a recovery above $65,000 could ease immediate selling pressure and encourage traders to test higher resistance levels.

For now, however, the market remains defensive. Bitcoin’s 2.8% decline, Ethereum’s 4.1% loss and the roughly 2.4% contraction in the total cryptocurrency market show that investors are reducing risk before one of the week’s most important monetary-policy events.