Bitcoin slipped below $80,000 during Asian trading on Monday, falling nearly 2% to around $79,800 as investors reduced risk exposure ahead of this week’s Federal Reserve meeting. Renewed selling in Asian technology stocks amid growing concerns over AI valuations added to the pressure, pushing Ether and XRP lower alongside other major cryptocurrencies.
The sell-off extended across much of the crypto market. Ether declined almost 3% to just above $2,300, while XRP dropped roughly 3% to $1.28. Solana lost 2%, trading close to the $100 threshold. DOGE, ZEC, HYPE and BNB fell between 1% and 2%. TRX was the exception, posting a gain of less than 1%, according to CoinDesk data.
Jeff Mei, chief operating officer at crypto exchange BTSE, said traders were becoming more defensive as Bitcoin slipped beneath $80,000 before the Fed’s policy announcement.
Mei noted that markets would be watching for indications from Federal Reserve Chair Kevin Warsh about the possibility of a December rate hike. While the central bank is expected to keep rates unchanged at Wednesday’s meeting, its forward guidance could prove more important for cryptocurrencies than the immediate decision.
He also warned that elevated oil prices, intensifying US-Iran tensions and persistent inflation could push policymakers toward a more hawkish position. Such an approach could keep borrowing costs high and restrict liquidity, creating additional headwinds for both crypto assets and stocks.
Federal Reserve Guidance Becomes the Main Market Focus
The Fed is scheduled to announce its interest-rate decision on Wednesday, followed by Warsh’s press conference. Investors will examine his comments for any indication that policymakers are considering another increase in December.
Higher interest rates generally raise borrowing costs and reduce the attractiveness of speculative assets. If the Fed signals a prolonged period of tighter monetary conditions, cryptocurrencies could face further pressure as investors shift toward less risky investments.
AI Stock Weakness Spreads Across Asian Markets
The decline in AI-related equities continued across Asia, reinforcing concerns about the outlook for technology investments.
South Korea’s Kospi fell 1% after Goldman Sachs strategists cut their 12-month target for the index by 25%. The benchmark is closely linked to AI sentiment because semiconductor companies such as Samsung Electronics carry significant weight in its performance.
Japanese chip stocks led declines on the Nikkei, while Chinese AI model developers also recorded losses. Nasdaq 100 futures slipped 0.1% as investors prepared for quarterly earnings from leading US technology companies later this week.
The MSCI Asia Pacific Index edged down 0.1% and continued to struggle after four consecutive weeks of losses, its longest losing streak since April.
Oil Retreats From Six-Month High
Brent crude fell 2% from its recent six-month peak to approximately $114 per barrel after President Donald Trump said a decision was approaching on whether to reach an agreement with Iran or resume military strikes. US Treasury prices advanced during the session.
For Bitcoin, reclaiming $82,500 remains a key technical test. The cryptocurrency lost that level last Thursday, and a move back above it could suggest that the latest decline is temporary. Until buyers recover that threshold, market participants may remain cautious ahead of the Fed announcement and major technology earnings.
