BUSINESS

Singapore: Bitcoin falls as Fed hike fears grow

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Bitcoin fell in early Asia trading on Tuesday, sliding as much as 2.3% to US$63,414 by 9 a.m. in Singapore, its lowest level in 11 days, as investors weighed the risk of higher US interest rates. Ether dropped about 3.6%. Citadel Securities expects the US Federal Reserve to raise rates by a quarter point on Wednesday, a move traders currently assign roughly a one-in-three probability. Rising borrowing costs typically pressure risk assets, including cryptocurrencies. The decline comes after modest bitcoin gains over the past month and follows more than US$465 million of outflows from US-listed bitcoin ETFs on July 23–24.

Prepared by Christopher Adams and reviewed by editorial team.

Timeline of Events

October 2023 Bitcoin peaks near US$126,000 record
Past month Bitcoin posts modest recovery gains
July 23 2026 US-listed bitcoin ETFs see heavy outflows
July 24 2026 ETF outflows break inflow streak
Last week Citadel signals possible Fed rate increase
Tuesday morning Bitcoin hits 11-day intraday low
Wednesday Fed decision on possible quarter-point hike
Near term Analysts highlight US$60,000 support zone

Why This Matters to You

If you own Bitcoin or other cryptocurrencies, be aware. A potential US Federal Reserve rate hike could affect their value. Keep an eye on the Fed's decision Wednesday. If you're considering investing, note the US$60,000 support zone.

The Bottom Line

Bitcoin's value can fluctuate with changes in the broader economy. It's not immune to factors like interest rates. As always, invest wisely and understand the risks. Worth forwarding if you know someone dabbling in cryptocurrencies.