Bitcoin falls to $63,000 as Fed uncertainty, crypto bill delays fuel sell-off; analysts see bottom forming

Bitcoin falls to $63,000 as Fed uncertainty and crypto bill delays weigh on prices, while analysts see early signs of a possible long-term bottom.

Bitcoin price falls to a 10-day low amid market pressure. Bitcoin (BTC) dropped more than 2% on Tuesday, falling to just above $63,000 per token, marking its lowest level in about 10 days. The world’s largest cryptocurrency has struggled to regain momentum after months of weakness, with traders watching several factors that could decide its next move.

Bitcoin falls to $63,000 as Fed uncertainty and crypto bill delays weigh on prices, while analysts see early signs of a possible long-term bottom. (Pexel/Representative image) (Pexel)

The decline came as investors became more cautious because of weakness in artificial intelligence-related stocks, uncertainty around the Federal Reserve’s next interest rate decision, and concerns over delays in major crypto legislation in the US.

AI stock sell-off, Fed uncertainty and crypto law delays hurt Bitcoin sentiment. Bitcoin’s recent decline was linked to broader market pressure, especially the sharp fall in AI-related stocks that affected investor confidence across risk assets. Investors are also waiting for signals from the Federal Reserve about future monetary policy, as interest rate decisions often influence demand for riskier assets like cryptocurrencies, according to Yahoo Finance.

Bitcoin regulation worries

At the same time, hopes around a major crypto regulation bill in Congress have weakened as lawmakers face a deadline before the August recess. Prediction market Polymarket showed the odds of the Clarity Act passing this year fell to 35% from 55% earlier this month, reflecting weaker confidence among traders.

Analyst says Bitcoin could find support near $55,000 if sell-off continues. Bitcoin could face more weakness if the crypto legislation fails to move forward, but analysts believe the decline could create a buying opportunity.

Compass Point analyst Ed Engel said Bitcoin may find strong support near the $55,000 level if prices fall further. "If Clarity Act doesn't pass, we see very strong support near ~$55k and would be buyers if BTC sells off this far," said Engel in a note on Monday night, as noted by Yahoo Finance.

Fed decision in focus

Fed decision becomes a key factor for Bitcoin’s next move. Investors are closely watching the Federal Reserve’s policy decision scheduled for Wednesday, as the central bank’s message could influence Bitcoin prices.

"For crypto, I continue to view the Fed's messaging around financial conditions and inflation as more important than the policy decision itself," said Sean Farrell, head of digital assets at Fundstrat, via Yahoo Finance. "My view is that we receive another 'hawkish hold,' but one must respect the non-negligible possibility of a rate hike," he said.

Bitcoin bottom signs

Chart analysts believe Bitcoin may be showing signs of a long-term bottom. While Bitcoin remains under pressure, some technical analysts believe the cryptocurrency is showing early signs that a long-term bottom may be forming. CNBC reported that Bitcoin is showing its “most encouraging signs yet” of establishing a bottom after months of weakness.

Oppenheimer technical analyst Ari Wald said Bitcoin has since stabilised above $58,000 after giving back around 60% of the gains made during the 2022-2025 rally. He believes Bitcoin's recent price action suggests that the cryptocurrency could be moving toward a bottom, although another decline cannot be ruled out.

"Downside momentum has begun to decelerate based on a bullish divergence in bitcoin’s weekly relative strength index, a measurement of the speed of price," Wald said in a note Monday, via CNBC.

Wald said Bitcoin may continue consolidating until it moves back above its 200-day moving average. "We expect additional consolidation until bitcoin can reclaim its 200-day average and cannot rule out a final leg lower similar to Q4 2022. Still, recent action represents the most constructive evidence of a developing bottom we have seen thus far."

Bitcoin's 200-day moving average is currently around $72,000. Analysts believe reclaiming this level could be an important signal that Bitcoin's trend is improving.

Bitcoin price outlook

Not all analysts are convinced that Bitcoin has reached a bottom. Wolfe Research analyst Read Harvey said Bitcoin remains in a broader downtrend and believes the recent recovery toward $65,000 may lose strength.

"Price remains in a clear downtrend beneath the downward sloping 200-day moving average, which it has failed to eclipse since losing it in November," he told CNBC. "We expect this latest stretch of relief to ultimately stall out below the 200-day moving average and reverse to make a new leg lower – as we have already seen play out multiple times this year."

Fairlead Strategies analyst Katie Stockton said one of the momentum indicators she follows has started improving. The improvement came even as Bitcoin recently hit a new low, suggesting that selling pressure could be weakening.

Stockton believes this could increase the chances of a more sustained recovery. "Bitcoin’s cyclical downtrend appears to be maturing," she said in a note Monday. "Long-term oversold conditions … [suggest] a basing phase has likely begun", according to a CNBC report.

Bitcoin’s move toward $63,000 has increased concerns among investors, but technical analysts are divided on what comes next. Some analysts believe the cryptocurrency is slowly forming a bottom after months of selling pressure.

Others warn that Bitcoin could still experience another decline before a stronger recovery begins. For now, traders are closely watching the Federal Reserve’s decision, crypto regulation developments in Congress, and Bitcoin’s ability to break above major technical levels.