CoinDesk
Bitcoin fell nearly 2% to about $79,800 in Asian morning trading as investors cut risk ahead of Wednesday’s Federal Reserve meeting. Ether dropped nearly 3% to just above $2,300, while XRP lost about 3% to $1.28 and SOL slid 2% to hover near $100. The broad decline followed another sell-off in Asian technology shares, with Goldman Sachs cutting its 12-month Kospi target by 25%.
Why it matters
Markets are focused less on an immediate rate decision than on whether the Fed signals a possible December increase. Higher rates raise borrowing costs and reduce liquidity available for riskier assets, putting pressure on both cryptocurrencies and growth-focused stocks.
The backdrop is already fragile. South Korea’s Kospi fell 1%, chip stocks weakened across Japan, and Chinese AI developers declined. Nasdaq 100 futures also slipped as investors prepared for earnings from major US technology companies. The MSCI Asia Pacific Index remained near a four-week losing run, while elevated oil prices added to inflation concerns.
Market impact
Bitcoin has now lost the $82,500 level that buyers need to reclaim before the decline can be treated as a pause. A more aggressive tone from Fed Chair Kevin Warsh would reinforce the risk-off trade, while softer guidance could ease pressure across crypto and AI-linked equities.
Selling reached most major tokens. DOGE, ZEC, HYPE and BNB fell between 1% and 2%, while TRX was the only major token in positive territory, up less than 1%. Brent crude eased 2% from a six-month high to about $114 a barrel, offering some relief to broader markets, but the Fed meeting remains the main near-term catalyst.
Frequently asked questions
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Why did Bitcoin fall below $80,000?
Traders reduced risk ahead of the Federal Reserve meeting, while another sell-off in Asian technology and AI shares weakened broader market sentiment.
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What are traders watching at the Fed meeting?
Investors are focused on whether the Fed signals a possible December rate increase. Higher rates could tighten liquidity and pressure crypto and growth stocks.
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Which major cryptocurrencies declined alongside Bitcoin?
Ether fell nearly 3%, XRP lost about 3%, and SOL declined 2%. DOGE, ZEC, HYPE and BNB also fell, while TRX gained less than 1%.
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Why is $82,500 important for Bitcoin?
Bitcoin lost $82,500 as a support level last Thursday. Reclaiming it would allow buyers to frame the current decline as a pause rather than a deeper breakdown.
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How did the Asian AI sell-off affect crypto markets?
The Kospi fell 1% after Goldman Sachs cut its 12-month target by 25%, while Japanese chip stocks and Chinese AI developers also declined, reinforcing the broader risk-off mood.
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