Bitcoin fell nearly 2 percent to about $79,800 on Monday morning in Asia as traders reduced risk ahead of the Federal Reserve’s meeting. Ether, XRP and other major tokens also declined, according to CoinDesk data.
The Fed announces its decision on Wednesday, and traders will watch Chair Kevin Warsh’s press conference for hints of a December rate hike. Higher rates tend to pull money away from riskier assets such as crypto.
Oil and Iran weigh on sentiment
Jeff Mei, chief operating officer at crypto exchange BTSE, said investors were de-risking ahead of the meeting as Bitcoin fell below $80,000. He said the Fed probably would not change rates this week, but that the strength of the chair’s hint at a December hike mattered for crypto.
Mei said record-high oil prices, an escalating US-Iran conflict and inflation could push the Fed toward an aggressive tone. That would mean higher rates and less liquidity for crypto and stocks alike.
Asian stocks extend losses
Asian tech shares kept falling, with the MSCI Asia Pacific Index down 0.1 percent after four consecutive weekly losses. Kospi slipped 1 percent, and Goldman Sachs cut its 12-month Kospi target by 25 percent.
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Trump said it was time to decide on a deal with Iran or resume attacks. Brent crude fell about 2 percent from a six-month high, to around $114 a barrel. Treasuries rose.
Key levels for bitcoin
Bitcoin must reclaim $82,500, the floor it lost last Thursday, to restore its recent support. By our market data, as of 05:18 GMT, bitcoin was at $80,040, down 0.98 percent from the previous close.
Related: Bitcoin slips below $82,000 as Iran tensions weigh on stocks · Bitcoin slips below $82,000 as Tesla and Meta earnings revive AI doubts
Data: CoinGecko
