Bitcoin Briefly Dips Below $80,000 as AI Worries Weigh on Asian Stocks Before the Fed Decides

Bitcoin slipped under $80,000 during Asian trading hours on Monday, Oct. 26, and stood at $79,785 at 08:07 UTC. It was back at $80,440 by 09:40 UTC, up about 0.4% over 24 hours, according to CoinGecko data. That leaves it roughly 4% lower than its level at the start of Thursday, Oct. 22, when it was near $84,080.

The move came as Asian stock markets fell and crypto traders trimmed exposure ahead of the Federal Reserve’s Oct. 27-28 policy meeting. Among other large tokens, ether changed hands near $2,331, XRP at $1.29 and solana near $101, per CoinGecko.

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South Korea’s Kospi, where chipmakers carry heavy weight, closed about 1.5% lower on Monday, while Japan’s Nikkei 225 ended down 0.8%, according to Yahoo Finance data.

The Fed will announce its decision on Wednesday. It lifted its target range to 3.75%-4% in September, the first increase since 2023. Rate futures priced a 90.6% chance that policymakers under Fed Chair Kevin Warsh hold that range this week and a 9.4% chance of a quarter-point hike, per the CME FedWatch tool as of 4:05 a.m. CT Monday.

Vikas Gupta, Bybit’s country manager for India, cited worries over AI company valuations and higher oil prices, and said forced liquidations of leveraged bets could sharpen short-term swings, according to CNBC-TV18.

Oil was already on Glassnode’s radar. In its Oct. 21 weekly report, the onchain analytics firm wrote that “should oil keep pushing inflation expectations higher, a second hike would be harder to rule out.”

Bitcoin’s recent drop again brings it near the US spot ETFs’ cost basis. Glassnode’s Oct. 21 report placed the spot ETFs’ and corporate treasuries’ cost bases between $80,000 and $81,500. Glassnode said that the cost basis has provided support this month. Bitcoin had swept down to about $80,000 on Oct. 15 before buyers stepped back in. Glassnode’s liquidation map showed leveraged positions bunched above the market, near $85,000 and $87,000.

Beyond the Fed, US GDP and PCE inflation figures are due Thursday, Oct. 29, and roughly $11 billion in bitcoin options expire on Friday, CNBC-TV18 reported, drawing on updates from crypto platforms BitDelta India and Mudrex.

Related Listen: The Fed Is Turning Hawkish. What Does That Mean for Bitcoin and Strategy?

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