Bitcoin slipped below $80,000 on Monday as traders reduced risk ahead of the Federal Reserve’s meeting on Wednesday. The world’s largest cryptocurrency fell nearly 2% to about $79,800 in Asian morning hours, according to CoinDesk data.
Bitcoin (Credits: CoinDesk)
The selling spread across almost every major token. Ether dropped nearly 3% to just above $2,300, and XRP lost about 3% to $1.28. SOL slid 2% and was barely holding $100, while DOGE, ZEC, HYPE and BNB each fell 1% to 2%. TRX was the only major token in the green, up less than 1%.
Bitcoin Below $80,000: Fed Meeting and AI Sell-Off Drive the Drop
Investors are watching the Fed meeting closely for signals of a possible December rate increase, which could tighten liquidity and put further pressure on cryptocurrencies and stocks. Jeff Mei, chief operating officer at crypto exchange BTSE, told CoinDesk that while the Fed probably will not change rates this week, markets are focused on how strongly the chair hints at a December hike.
Mei also pointed to record high oil prices, the escalating US-Iran conflict, and inflation as factors that could push the Fed toward a more aggressive tone. A continuing sell-off in Asian technology shares added to the pressure, with Goldman Sachs cutting its Kospi target by 25% as the AI trade took another hit in the region.
What Traders Are Watching Next for Bitcoin
According to CoinDesk’s report, Bitcoin must reclaim $82,500 to restore confidence among buyers. Until the Fed’s message is clear, traders appear to be staying cautious, with the $80,000 level now acting as a key line to watch in the days ahead.
Also Read: Bitcoin Bounces Back to Nearly $82,000 as Gold Recovers and Yen Gives Up Gains
Source: CoinDesk — read the full story there.