Bitcoin drops under $80,000 as traders trim risk ahead of Fed meeting
Bitcoin slipped nearly 2% to $79,800 on Monday morning.
The short version
- Traders are cutting risk ahead of the Federal Reserve rate decision.
- Ether and XRP dropped about 3% across the board.
- Higher borrowing costs pull money straight out of riskier crypto assets.
Check your crypto portfolio this week. Bitcoin just slipped nearly 2% to about $79,800 as traders cut risk ahead of the Federal Reserve meeting. Selling hit almost every major token across the board, according to CoinDesk data.
Ether dropped nearly 3% to just above $2,300, while XRP lost about 3% down to $1.28. SOL slid 2% and is barely holding $100. Jeff Mei, the chief operating officer at crypto exchange BTSE, said investors are de-risking as Bitcoin falls below the $80k mark.
"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 central bank announces its decision on Wednesday, and traders will listen closely for any hint of a December hike.
Higher rates make borrowing more expensive and pull money out of riskier assets. Meanwhile, Brent crude fell 2% to about $114 a barrel after US President Donald Trump said it is decision time on Iran. Bitcoin needs to get back above $82,500 before buyers can call this dip a pause.
Photo: AntanaCoins, CC BY-SA 3.0
