Bitcoin Loses $80K Support as Markets Turn Cautious Ahead of Fed Meeting

Bitcoin fell almost 2% to approximately $79,800 during Asian trading on Monday as investors reduced their exposure to riskier assets ahead of the Federal Reserve’s policy meeting. Renewed weakness in Asian technology stocks amid concerns over AI spending added to the pressure, sending Ether, XRP and other major cryptocurrencies lower.

The sell-off affected nearly the entire large-cap crypto market. Ether dropped close to 3% to just above $2,300, while XRP declined around 3% to $1.28. Solana lost 2% and hovered near $100. DOGE, ZEC, HYPE and BNB fell between 1% and 2%, while TRX edged up less than 1%, making it the only major token in positive territory, according to CoinDesk data.

Jeff Mei, chief operating officer at cryptocurrency exchange BTSE, said investors were taking a more cautious approach after Bitcoin slipped below the $80,000 threshold.

Speaking to CoinDesk, Mei said the Federal Reserve meeting was the main focus for traders, particularly any indication from Chair Kevin Warsh that policymakers might raise interest rates in December. Although the Fed is expected to keep rates unchanged this week, signals about its next move could shape sentiment across the cryptocurrency market.

Mei also highlighted high oil prices, rising tensions between the United States and Iran, and ongoing inflation as factors that could lead the central bank to adopt a more aggressive policy stance. Tighter monetary conditions and reduced liquidity could weigh on both digital assets and equities.

Fed Meeting Puts December Rate Hike in Focus

The Federal Reserve is scheduled to announce its interest-rate decision on Wednesday. Investors will closely examine Warsh’s press conference for clues about whether another rate increase could be considered in December.

Higher interest rates raise borrowing costs and often make speculative investments less attractive. If the Fed signals that monetary policy will remain restrictive for longer, cryptocurrencies could face further pressure as investors limit their exposure to volatile assets.

Asian AI Stocks Extend Losses

The downturn in AI-related equities continued across Asia, reflecting growing investor caution toward the technology sector.

South Korea’s Kospi declined 1% after Goldman Sachs strategists cut their 12-month target for the index by 25%. The benchmark is an important gauge of AI sentiment because semiconductor companies such as Samsung Electronics account for a significant share of its performance.

Japanese chipmakers led losses on the Nikkei, while Chinese AI model developers also moved lower. Nasdaq 100 futures slipped 0.1% as investors prepared for quarterly earnings from major US technology companies later this week.

The MSCI Asia Pacific Index fell 0.1%, struggling to recover after four consecutive weekly declines. The streak represents its longest run of losses since April.

Oil Prices Ease as Markets Assess Geopolitical Risks

Brent crude dropped 2% from a six-month high to around $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 moved higher.

For Bitcoin, the next key level is $82,500, a threshold the cryptocurrency lost last Thursday. A sustained move back above that price could strengthen the argument that the latest decline is a temporary pullback. Until buyers reclaim it, traders may remain defensive ahead of the Fed announcement and this week’s major technology earnings reports.