Bitcoin falls over 2% amid fears of potential US rate hike

Cryptocurrency prices declined during Tuesday's trading amid concerns over a potential US interest rate hike, as higher borrowing costs tend to steer investors away from riskier assets.

Bitcoin, the world's largest cryptocurrency by market value, fell more than 2%, hitting its lowest level in 11 days, while Ethereum dropped more than 3%.

The Federal Reserve is scheduled to announce its interest rate decision tomorrow. While markets broadly expect rates to remain unchanged, investors are hoping that comments from Fed Chair Kevin Warsh will provide greater clarity on the future path of monetary policy.

However, Citadel Securities expects the Fed to surprise markets with a 25-basis-point rate hike tomorrow, arguing that such a move would strengthen Warsh's credibility in combating inflation.