India, Sept. 15 -- Bitcoin fell sharply on Tuesday as investors grew cautious ahead of two major events that could affect the crypto market. The world's largest cryptocurrency dropped about 3% during the day. The first major concern is the Federal Reserve's interest-rate decision due Wednesday. Investors are increasingly expecting the Fed to raise interest rates, which can put pressure on riskier assets such as cryptocurrencies.

Markets are currently pricing in a 92% chance of a Fed rate hike, according to the CME FedWatch Tool. This has added pressure on Bitcoin as traders prepare for the central bank's decision, according to Yahoo Finance.

Higher interest rates can make investors less willing to hold risky assets. When borrowing costs...