Bitcoin Slides Toward $63,000 as an Asian Stock Rout Sets Up a High-Stakes Fed Week

Bitcoin fell to around $63,000 early on Tuesday before slightly rebounding to most recently trade around $63,400, coinciding with a sharp decline in the South Korean stock market..

South Korea’s Kospi index has tumbled nearly 11% to its lowest level since mid-April, leaving it down over 36% from a mid-June peak. Losses were concentrated in chip heavyweights Samsung and SK Hynix.

Bitcoin, meanwhile, faces a bigger test midweek. The Federal Reserve announces its interest rate decision Wednesday, followed Thursday by Core PCE inflation and GDP data. Citadel Securities said in a note on Monday that it expects the Fed to deliver a quarter point interest rate increase Wednesday, according to Bloomberg.

“The market may once again be underestimating the extent of the hawkish shift at the Fed,” Citadel Securities Head of Macro Strategy Frank Flight was quoted by Bloomberg as saying.

The odds of a rate hike most recently stood at 33.7%, according to the CME Group’s FedWatch Tool.

Declining odds of the Clarity Act, the market structure bill many traders view as a trigger for institutional inflows, passing this year has also weighed on the market.

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