Bitcoin slips under $80,000 as traders de-risk ahead of Fed meeting
Bitcoin dropped below $80,000 on Monday, falling nearly 2% to about $79,800 during Asian morning hours, as traders trimmed risk ahead of this week's Federal Reserve meeting and a fresh leg down in the AI trade dragged on technology stocks across the region.
The selling was broad. Ether lost nearly 3% to just above $2,300, XRP fell about 3% to $1.28, and SOL slid 2% while barely holding $100, according to CoinDesk data. DOGE, ZEC, HYPE and BNB each fell 1% to 2%, with TRX the only major token in the green, up less than 1%.
Jeff Mei, chief operating officer at crypto exchange BTSE, said in an email to CoinDesk that all eyes were on the Fed meeting this week and it already seemed like investors were de-risking as Bitcoin fell below the $80k mark. He said that while the Fed probably would not change rates this week, the focus was on how strongly the chair hinted at a December hike, which is what matters for crypto. Mei added that record high oil prices, the escalating US-Iran conflict and inflation could push the Fed toward an aggressive tone, meaning higher rates and less liquidity for crypto and stocks.
The Fed announces its decision on Wednesday, and traders will parse Chair Kevin Warsh's press conference for any signal of a December hike. Higher rates make borrowing more expensive and tend to pull money out of riskier assets. In Asia, South Korea's Kospi fell 1% after Goldman Sachs strategists cut their 12-month target for the index by 25%, chip stocks led losses on Japan's Nikkei, and Chinese AI model developers slumped. Nasdaq 100 futures slipped 0.1% ahead of earnings from the largest US tech companies.
Oil offered some relief: Brent crude fell 2% from a six-month high to about $114 a barrel after President Donald Trump said it is "getting to be decision time" on whether to reach a deal with Iran or resume attacks, and Treasuries rose. For bitcoin, the test is $82,500, the floor it lost last Thursday — buyers need it back before this week's dip can be called a pause.
