Bitcoin fell nearly 2% to about $79,800 as of Monday Asian morning hours as traders cut risk ahead of this week’s Federal Reserve meeting and another leg down in the AI trade weighed on tech stocks across the region.
Selling hit 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 is barely holding $100. DOGE, ZEC, HYPE and BNB each fell 1% to 2%, while TRX was the only major in the green, up less than 1%, according to CoinDesk data.
“This week, all eyes are on the Fed meeting and it already seems like investors are de-risking as Bitcoin falls below the $80k mark. While the Fed probably won’t change rates this week, we’re watching how strongly the chair hints at a December hike — that’s what matters for crypto,” Jeff Mei, chief operating officer at crypto exchange BTSE, said in an email to CoinDesk.
“Given record high oil prices, the escalating US-Iran conflict, and inflation, the Fed could very well adopt an aggressive tone, which means higher rates and less liquidity for crypto and stocks,” he added.
The Fed announces its decision on Wednesday, and traders will be listening to Chair Kevin Warsh’s press conference for any hint that a hike is coming in December. Higher rates make borrowing more expensive and tend to pull money out of riskier assets like crypto.
In Asia, the AI selloff kept going. South Korea’s Kospi, which traders watch for AI sentiment because of how much weight chipmakers like Samsung Electronics carry in it, fell 1% after Goldman Sachs strategists cut their 12-month target for the index by 25%.
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