MIAMI , Florida ( CNN ) -- Forecasters issued a tropical storm warning Thursday for the Atlantic island of Bermuda as Category 3 Hurricane Bill neared . Hurricane Bill 's projected path shows it moving north toward New England and then Canada . The warning from the National Hurricane Center means tropical storm conditions , including winds of at least 39 mph ( 63 kph ) , are expected on the island within 24 hours . A hurricane watch was also in effect , meaning hurricane conditions , including winds of at least 74 mph ( 119 kph ) , are possible within 36 hours . As of 11 p.m . ET Thursday , Bill 's center was about 510 miles ( 825 kilometers ) south of Bermuda , and about 975 miles ( 1,570 kilometers ) southeast of Cape Hatteras , North Carolina , the hurricane center said . The storm was moving northwest at near 18 mph ( 30 kph ) , and is expected to continue that motion overnight , with a gradual turn to the north-northwest on Friday followed by a turn toward the north on Saturday . `` The core of the hurricane is expected to pass between Bermuda and the east coast of the United States on Saturday , '' forecasters said . See Bill 's projected path » . However , Bill is considered a large hurricane , with hurricane-force winds extending out 115 miles ( 185 kilometers ) from the center and tropical storm-force winds extending out 260 miles ( 418 kilometers ) , so Bermuda is likely to feel its effects as it brushes by . Bill 's maximum sustained winds had increased slightly to 125 mph ( 205 kph ) , with higher gusts , the hurricane center said . It was downgraded to a Category 3 storm from Category 4 status early Thursday , after its top sustained winds slipped below 131 mph ( 211 kph ) . Fluctuations in intensity are likely over the next 12 to 24 hours , however , and Bill could regain Category 4 strength Friday , forecasters said . Large swells generated by Bill were affecting the northern Leeward Islands on Thursday , along with Puerto Rico and the island of Hispaniola , shared by Haiti and the Dominican Republic . The East Coast of the United States should start seeing large swells during the next few days , along with the Bahamas , Bermuda and the eastern coast of Canada , the hurricane center said . `` These swells will cause extremely dangerous surf and life-threatening rip currents . '' Bill is forecast to diminish into a Category 1 hurricane by Sunday evening , when it could make landfall near Nova Scotia or Newfoundland , Canada .
Bermuda on September as Hurricane Bill gets closer . Hurricane Bill upgraded to Category 3 storm . U.S. East Coast expected to have large swells during the next few days . Hurricane expected to make landfall near Nova Scotia or Newfoundland , Canada on September .