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.

Oil prices extended their sharp decline on Tuesday, falling to their lowest levels in more than a week as investors unwound the geopolitical risk premium that had built up during the recent conflict involving the United States and Iran.

As of approximately 12:07 PM GMT time, Brent crude futures traded near $86.68 per barrel, down $1.68, or 1.90%, while U.S. West Texas Intermediate crude fell to $81.33 per barrel, losing $1.28, or 1.55%.

The declines followed Monday's heavy losses, leaving both benchmarks well below the highs reached during last week's surge above $100 per barrel, when fears of severe supply disruptions dominated global energy markets.

Diplomacy replaces fear

The biggest catalyst behind Tuesday's decline was growing optimism that the United States and Iran could move toward a diplomatic solution instead of renewed military escalation.

President Donald Trump said Washington was holding "good talks" with Iran and suggested there was a chance of reaching an agreement, although he warned military strikes could resume if negotiations failed.

At the same time, reports indicated that Oman has secured backing from several Gulf states for a proposal that would allow Iran to collect voluntary transit fees through the Strait of Hormuz, offering a potential path toward restoring normal shipping through one of the world's most important oil corridors.

The prospect of improving diplomatic relations encouraged traders to reduce the sizable geopolitical premium that had been embedded in crude prices over the past two weeks.

Supply concerns begin to ease

Although shipping activity through the Strait of Hormuz remains below normal levels, investors are becoming increasingly confident that a complete shutdown of the route is becoming less likely.

The Strait carries roughly one-fifth of global oil consumption, making any disruption one of the largest risks facing the energy market.

Even so, traders are beginning to focus on the possibility that crude exports could gradually normalize if negotiations continue to make progress.

That shift in sentiment has outweighed the fact that security risks remain elevated across the Middle East.

 Risks have not disappeared

Despite the sharp decline in oil prices, geopolitical tensions have not been fully resolved.

Shipping through the Red Sea continues to face security threats, while attacks linked to Iran-backed groups remain a concern for regional energy infrastructure.

Saudi Arabia also confirmed that its Jazan refinery was shut down following a recent drone attack, highlighting that supply risks have not disappeared entirely.

However, investors currently believe these threats are less likely to produce the widespread supply disruptions that markets feared only days ago.

What comes next?

Oil traders will continue to monitor diplomatic developments between Washington and Tehran, as any setback in negotiations could quickly reverse the recent decline.

At the same time, attention will also turn toward upcoming U.S. inventory data and the Federal Reserve's policy decision, both of which could influence expectations for economic growth and future oil demand.

For now, the market is sending a clear message: investors believe the probability of a major supply disruption has declined, and they are rapidly removing the geopolitical premium that pushed crude prices above $100 only last week.

Oil prices extended their sharp decline on Tuesday, falling to their lowest levels in more than a week as investors unwound the geopolitical risk premium that had built up during the recent conflict involving the United States and Iran.

As of approximately 12:07 PM GMT time, Brent crude futures traded near $86.68 per barrel, down $1.68, or 1.90%, while U.S. West Texas Intermediate crude fell to $81.33 per barrel, losing $1.28, or 1.55%.

The declines followed Monday's heavy losses, leaving both benchmarks well below the highs reached during last week's surge above $100 per barrel, when fears of severe supply disruptions dominated global energy markets.

Diplomacy replaces fear

The biggest catalyst behind Tuesday's decline was growing optimism that the United States and Iran could move toward a diplomatic solution instead of renewed military escalation.

President Donald Trump said Washington was holding "good talks" with Iran and suggested there was a chance of reaching an agreement, although he warned military strikes could resume if negotiations failed.

At the same time, reports indicated that Oman has secured backing from several Gulf states for a proposal that would allow Iran to collect voluntary transit fees through the Strait of Hormuz, offering a potential path toward restoring normal shipping through one of the world's most important oil corridors.

The prospect of improving diplomatic relations encouraged traders to reduce the sizable geopolitical premium that had been embedded in crude prices over the past two weeks.

Supply concerns begin to ease

Although shipping activity through the Strait of Hormuz remains below normal levels, investors are becoming increasingly confident that a complete shutdown of the route is becoming less likely.

The Strait carries roughly one-fifth of global oil consumption, making any disruption one of the largest risks facing the energy market.

Even so, traders are beginning to focus on the possibility that crude exports could gradually normalize if negotiations continue to make progress.

That shift in sentiment has outweighed the fact that security risks remain elevated across the Middle East.

 Risks have not disappeared

Despite the sharp decline in oil prices, geopolitical tensions have not been fully resolved.

Shipping through the Red Sea continues to face security threats, while attacks linked to Iran-backed groups remain a concern for regional energy infrastructure.

Saudi Arabia also confirmed that its Jazan refinery was shut down following a recent drone attack, highlighting that supply risks have not disappeared entirely.

However, investors currently believe these threats are less likely to produce the widespread supply disruptions that markets feared only days ago.

What comes next?

Oil traders will continue to monitor diplomatic developments between Washington and Tehran, as any setback in negotiations could quickly reverse the recent decline.

At the same time, attention will also turn toward upcoming U.S. inventory data and the Federal Reserve's policy decision, both of which could influence expectations for economic growth and future oil demand.

For now, the market is sending a clear message: investors believe the probability of a major supply disruption has declined, and they are rapidly removing the geopolitical premium that pushed crude prices above $100 only last week.

The euro remained under pressure against the U.S. dollar on Tuesday as investors continued to position for the possibility of another Federal Reserve interest-rate increase.

As of approximately 9:50 GMT time, the euro traded near $1.1370, rising by a marginal 0.05% during the session after struggling to recover from its recent losses.

The U.S. dollar index, which measures the greenback against a basket of six major currencies, held broadly unchanged near 101.50 after touching its highest level since July 1.

The euro’s limited rebound reflected continued demand for the dollar as investors reassessed the outlook for U.S. monetary policy.

Fed expectations support the dollar

Markets were pricing in an approximately 40% probability that the Federal Reserve would raise interest rates by 25 basis points at the conclusion of its meeting on Wednesday, compared with roughly 20% one week earlier.

Traders were also assigning a nearly 95% probability to at least one rate increase by September.

Higher U.S. interest-rate expectations generally support the dollar by increasing the returns available on dollar-denominated assets, making it more difficult for the euro to stage a sustained recovery.

U.S. Treasury yields have also remained close to multi-month highs, providing additional support for the greenback.

Falling oil offers limited euro support

Oil prices continued to decline after the United States paused attacks on Iran over the weekend, reducing some of the inflation concerns that had previously strengthened expectations of tighter Federal Reserve policy.

However, the decline in energy prices was not enough to generate a meaningful euro recovery.

The currency remained close to recent lows as investors waited for clearer guidance from the Federal Reserve and upcoming U.S. economic data, including second-quarter gross domestic product and the core personal consumption expenditures inflation index.

Euro outlook remains tied to Fed decision

The euro’s next major move will likely depend on the tone of the Federal Reserve’s policy statement.

An unexpected rate increase, or signals that another increase is likely in September, could push the euro below the $1.1350 level and strengthen the dollar further.

In contrast, a decision to leave rates unchanged accompanied by a more cautious message could trigger a reversal in crowded dollar positions and allow the euro to recover toward $1.1400.

For now, the euro remains relatively stable at around $1.1370, but its modest 0.05% gain highlights the difficulty it faces while U.S. rate expectations and elevated Treasury yields continue to favor the dollar.