Bitcoin Holds Near $63,000 as Markets Await Fed Rate Decision

NEW YORK — Bitcoin traded near $63,000 on Tuesday, July 28, as cryptocurrency traders reduced risk exposure ahead of the Federal Reserve’s upcoming interest rate decision. Broader macroeconomic uncertainty and a sharp sell-off in global technology equities continued to weigh on digital asset prices across spot and derivatives venues.

The world’s largest cryptocurrency dropped 3.1% over a 24-hour window to trade at $63,458 as of 05:42 GMT. The decline marks Bitcoin’s lowest trading level since July 17, retreating from last week’s peak above $66,400.

The Federal Open Market Committee (FOMC) commenced its scheduled two-day policy meeting on Tuesday. Financial markets broadly expect central bankers to maintain the benchmark federal funds rate, though market participants remain focused on potential signals regarding monetary policy through the remainder of the year. CME FedWatch tool data indicates traders are evaluating economic data against persistent inflation metrics.

Spillover from global equity markets added pressure to risk assets overnight. A sharp drop in Asian semiconductor and artificial intelligence-linked shares contributed to reduced risk appetite across global trading desks.

The price pullback triggered widespread leverage unwinding across crypto derivatives platforms. CoinGlass data shows total crypto market liquidations reached approximately $682.25 million over 24 hours, affecting 165,529 individual trading accounts. Long positions accounted for the majority of the liquidated leverage.

Institutional flows into digital asset investment products also cooled. U.S.-listed spot Bitcoin exchange-traded funds (ETFs) recorded more than $465 million in net outflows near the end of last week, according to fund tracking data. The weakness in spot inflows has capped upside momentum following Bitcoin’s initial rebound from its early-July low of $57,754.

Altcoins mirrored Bitcoin’s downside movement. Ethereum fell 4.3% to $1,884, while major tokens including BNB, Solana, XRP, Cardano, and Dogecoin declined between 3% and 7.7% over the same period. Total cryptocurrency market capitalization contracted 2.7% to $2.17 trillion, according to data from CoinMarketCap.

Technical analysts point to immediate support for Bitcoin between $62,500 and $62,800. Market observers note that holding above this range remains critical to prevent further liquidations, while a sustained push above $66,000 would be required to re-establish bullish momentum.

Key Takeaways

• Price Stability Near Key Level: Bitcoin traded at $63,458, holding near the $63,000 mark as traders braced for the FOMC rate outcome.

• Derivatives Unwinding: CoinGlass reported $682.25 million in total market liquidations across 165,529 traders over 24 hours.

• Institutional Outflows: Spot Bitcoin ETFs posted $465 million in net outflows late last week, weakening buying support.

• Macro Drag: Weakness in Asian technology equities and AI-related stocks spilled over into digital asset markets.

Market Impact

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