Bitcoin fell almost 2% to approximately $79,800 during Asian trading on Monday as investors trimmed their exposure to risk assets ahead of this week’s Federal Reserve meeting. A fresh decline in Asian technology shares, driven by renewed concerns over AI valuations, added pressure to the broader cryptocurrency market, with Ether and XRP among the biggest losers.
Most major digital assets traded in negative territory. Ether dropped nearly 3% to just above $2,300, while XRP declined around 3% to $1.28. Solana slipped 2%, leaving it barely above $100. DOGE, ZEC, HYPE and BNB each lost between 1% and 2%. TRX bucked the trend, rising less than 1%, according to CoinDesk data.
Jeff Mei, chief operating officer of cryptocurrency exchange BTSE, said traders were increasingly cautious as Bitcoin moved below the $80,000 threshold ahead of the Fed’s upcoming decision.
Mei told CoinDesk that investors were paying close attention to whether Federal Reserve Chair Kevin Warsh would suggest another rate increase could arrive in December. Although the central bank is not expected to change rates at this week’s meeting, any indication of a more aggressive policy outlook could influence crypto market sentiment.
He also pointed to high oil prices, rising tensions between the United States and Iran, and persistent inflation as factors that could encourage the Fed to maintain a hawkish stance. Tighter monetary policy and reduced liquidity could weigh on both cryptocurrencies and equities.
Markets Await Fed Guidance on December Rates
The Federal Reserve is due to announce its interest-rate decision on Wednesday. Investors will scrutinize Warsh’s press conference for signals about the possibility of a rate hike in December.
Higher interest rates increase borrowing costs and can reduce demand for speculative investments. As liquidity tightens, assets such as Bitcoin and other cryptocurrencies may face additional selling pressure.
Asian Technology Stocks Extend Their Decline
The latest retreat in AI-related shares across Asia further weakened investor appetite for risk.
South Korea’s Kospi dropped 1% after Goldman Sachs strategists cut their 12-month target for the index by 25%. The benchmark is considered an important gauge of AI sentiment because semiconductor heavyweights such as Samsung Electronics have substantial influence over its performance.
Japanese chipmakers led losses on the Nikkei, while Chinese AI model developers also saw their shares decline. 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 edged down 0.1%, extending its struggle to recover from four consecutive weekly declines. The streak represents its longest run of losses since April.
Falling Oil Prices Provide Limited Relief
Oil prices retreated from recent highs, offering some relief to financial markets. Brent crude dropped 2% to around $114 per barrel after President Donald Trump said a decision was approaching on whether to pursue a deal with Iran or resume attacks.
US Treasury prices rose as markets assessed the latest developments.
For Bitcoin, the $82,500 level remains an important technical threshold. The cryptocurrency fell below that mark last Thursday, and reclaiming it would strengthen the case that the current weakness represents a temporary pause rather than a more sustained downturn. Until then, traders may remain cautious as they await the Fed’s decision and fresh signals from major technology earnings.
