- Bitcoin fell nearly 2% to about $79,800 in Monday’s Asian morning hours as traders cut risk ahead of this week’s Federal Reserve meeting and another leg down in the AI trade weighed on tech stocks across the region. Bitcoin needs to get back above $82,500, the floor it lost last Thursday, before buyers can call the dip a pause, according to CoinDesk.
- Selling hit almost every major token: ether dropped nearly 3% to just above $2,300, XRP lost about 3% to $1.28, and SOL slid 2% and is barely holding $100. TRX was the only major in the green, up less than 1%, according to CoinDesk data.
- The Fed announces its decision on Wednesday, and traders will listen to Chair Kevin Warsh’s press conference for any hint of a December hike. BTSE COO Jeff Mei said the Fed probably won’t change rates this week, but that record-high oil prices, the escalating US-Iran conflict and inflation could push it toward an aggressive tone, meaning “higher rates and less liquidity for crypto and stocks.”
- The AI selloff kept going in Asia, where South Korea’s Kospi fell 1% after Goldman Sachs cut its 12-month target for the index by 25%, and Nasdaq 100 futures slipped 0.1% ahead of earnings from the biggest US tech companies this week. Oil gave some relief, with Brent falling 2% from a six-month high to about $114 a barrel, and Treasuries rose.
What Happened?
Bitcoin slipped under $80,000 early Monday in Asia, falling nearly 2% to about $79,800, as investors reduced risk ahead of the Fed’s Wednesday decision. The selling was broad, with ether down nearly 3% to just above $2,300, XRP off about 3% at $1.28 and SOL down 2% near $100, while DOGE, ZEC, HYPE and BNB each fell 1% to 2%. The move came as the AI selloff continued in Asian tech stocks and Nasdaq 100 futures edged 0.1% lower.
Why It Matters?
Crypto is trading as a high-beta macro asset going into a Fed meeting where the risk is a hawkish turn, not a cut. Higher rates make borrowing more expensive and tend to pull money out of riskier assets like crypto, and BTSE’s Mei said the question that matters is how strongly the chair hints at a December hike. With oil near six-month highs and the AI trade under pressure, bitcoin is losing support from both liquidity and risk appetite at the same time.
What’s Next?
The key level is $82,500, which bitcoin must reclaim to signal that the drop is only a pause, according to CoinDesk. Wednesday’s Fed statement and Warsh’s press conference are the main catalyst, followed by earnings from Microsoft and Alphabet the same afternoon and Amazon on Thursday. A softer oil price after President Trump said it is “getting to be decision time” on an Iran deal could ease some pressure, but a hawkish Fed message would likely extend the de-risking.
Affected Tickers and Coins: BTC, ETH, XRP, SOL
Source: CoinDesk
