Bitcoin dropped to a 10-day low of $63,000 on Wednesday, sliding after a rejection at $65,600 as traders turned cautious ahead of the Federal Reserve's FOMC meeting. The central bank is widely expected to hold rates steady at 3.50%-3.75%, but a surprise hike remains a one-in-three possibility given persistent inflation. The pullback comes alongside broad risk-off moves in Asian equities and a sharp reversal in gold.
What's driving the sell-off
Asian stock markets took a hit — South Korea's KOSPI fell from 6,767 to 6,230, and Japan's Nikkei 225 dropped from 64,800 to 62,365. US stocks were flat, but big names like Nvidia and Micron lost up to 5%. Gold peaked near $4,120 before shedding over $100 in hours. Bitcoin ETF outflows added to the pressure: Monday saw under $12 million in net redemptions, extending a streak that saw $225 million leave on Thursday and $240 million on Friday.
Analysts flag key levels
Analyst Ali Martinez pointed out that Bitcoin's 3-day Bollinger Bands have tightened, a pattern that historically precedes major price moves. Ted Pillows put the next support at $62,000, warning that a break below that could open the door to a drop under $60,000. On the flip side, analyst CW noted that whales are rapidly recovering selling volume and no major sell walls are present, which could set up a short-term bounce.
FOMC is the main event
All eyes are on tomorrow's rate decision. June CPI came in lower than expected, but many see that print as a one-off or misleading. If the Fed surprises with a hike, risk assets including Bitcoin could take another leg down. If they hold as expected, the focus will shift to Chair Powell's tone on inflation and the path forward. For now, Bitcoin is stuck in a tightening range — and the next 24 hours will likely decide which way it breaks.
