A Bitcoin price drop of nearly 2% pushed the token to about $79,800 during Asian morning trading on Monday, October 26, as investors reduced risk before the Federal Reserve’s Wednesday meeting. The retreat below $80,000 came alongside further losses in Asian AI stocks, with oil prices, inflation and the US-Iran conflict weighing on markets.
Key takeaways
- Ether and XRP fell roughly 3%, while TRX edged higher.
- BTSE’s Jeff Mei is watching for signals of a December rate increase.
- Goldman Sachs cut its 12-month Kospi target by 25%.
Bitcoin’s price drop spreads across major tokens
Selling extended across almost all major cryptocurrencies. Ether fell nearly 3% to slightly above $2,300, while XRP declined about 3% to $1.28.
SOL lost 2% and barely held $100. DOGE, ZEC, HYPE and BNB each dropped between 1% and 2%, according to market data. TRX was the sole major token to gain, advancing less than 1%.
Fed signals put December rates in focus
Investors are reducing exposure ahead of the Fed meeting, according to Jeff Mei, chief operating officer at BTSE. He expects rates to remain unchanged this week but is watching how strongly the chair signals a potential December increase.
Mei pointed to high oil prices, the escalating US-Iran conflict and inflation as reasons the Fed might strike an aggressive tone. In his assessment, higher rates would mean less liquidity for cryptocurrencies and stocks.
Asian AI stocks slide as oil stays elevated
South Korea’s Kospi fell 1% after Goldman Sachs strategists lowered their 12-month index target by 25%. The index serves as a gauge of AI sentiment because chipmakers such as Samsung Electronics carry substantial weight.
Chip stocks led losses on Japan’s Nikkei, while Chinese AI model developers also declined. Nasdaq 100 futures slipped 0.1% ahead of earnings from the biggest US technology companies this week.
The MSCI Asia Pacific Index lost 0.1%, following four consecutive weekly declines—its longest losing stretch since April.
There was a bit of good news on oil prices: Brent crude dropped 2%, pulling back from a six-month peak to roughly $114 a barrel. The move followed President Donald Trump’s statement that it was “getting to be decision time” on reaching an agreement with Iran or resuming attacks. Treasuries rose.
The $82,500 level marks Bitcoin’s stabilization test
After the Bitcoin price drop, the technical threshold for stabilization is a recovery above $82,500. That level had served as a floor before Bitcoin broke below it last Thursday.
Article produced with the assistance of artificial intelligence and reviewed by the editorial team.