CoinDesk
Bitcoin slipped below $80,000 to around $79,700, down 0.4% since midnight UTC, while Ether fell 0.5%. The retreat came as South Korea's Kospi rallied 3.1%, highlighting crypto's weak response to a broader Asian technology rebound. The DeFi index dropped 1.8%, the sharpest decline among the tracked CoinDesk indexes.
The Federal Reserve has begun a two-day meeting, with its interest-rate decision due Wednesday. CME's FedWatch tool puts the probability of no change at around 90%, leaving traders focused on whether officials signal another rate increase before year-end. U.S. stock futures edged lower ahead of major technology earnings, while crude approached $102 a barrel.
Why it matters
The market is showing a defensive mix rather than a disorderly unwind. U.S. spot Bitcoin ETFs took in $110 million on Monday, ending two sessions of outflows, but derivatives positioning still leans toward downside protection. The most-traded Bitcoin options position over the past 24 hours was a $72,000 put expiring Dec. 25, while positive 25-delta put-call skews persisted across Bitcoin and Ether tenors.
Futures volume rose 18% to $152 billion in 24 hours, while open interest increased only 0.95%. Liquidations eased 13% to $133 million, and the taker long-short ratio was nearly even at 49.54% to 50.46%. That points to heavy activity without a clear directional winner.
Market impact
Bitcoin and Ether each fell about 1.1% over 24 hours, while SOL lost 1.91%. Futures open interest rose for all three, with SOL up 3.6%, and funding remained positive, indicating that long positions had not fully exited. SOL's negative cumulative volume delta nevertheless showed market-order selling.
DeFi tokens gave back earlier gains, with AAVE down 3.6%. Privacy coins held up better, with DASH up 1.8% and ZEC gaining 0.5%. Traders now have two immediate catalysts: Wednesday's Fed decision and whether ETF inflows can continue while options markets price protection below spot.
Frequently asked questions
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Why did Bitcoin fall below $80,000 despite the Asian tech rally?
Bitcoin slipped to around $79,700 while South Korea's Kospi rose 3.1%. Crypto did not follow the broader Asian technology rebound.
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What is the market expecting from the Federal Reserve meeting?
CME's FedWatch tool shows around a 90% chance of no rate change on Wednesday. Traders are watching for guidance on another increase before year-end.
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What does the $72,000 Bitcoin put indicate?
The $72,000 put expiring Dec. 25 was the most-traded Bitcoin options position over the past 24 hours. Positive put-call skews also indicate demand for downside protection.
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How did crypto derivatives activity change?
Crypto futures volume rose 18% to $152 billion in 24 hours, while open interest increased 0.95%. Liquidations fell 13% to $133 million and the taker ratio remained nearly even.
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Which major crypto assets showed the weakest performance?
Bitcoin and Ether each fell about 1.1% over 24 hours, while SOL lost 1.91%. AAVE declined 3.6% as DeFi tokens gave back earlier gains.
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