Bitcoin Falls Below $80,000 as Fed Meeting Begins
Written with artificial intelligence.
Bitcoin dropped 0.4% to approximately $79,700, while altcoins also saw declines. The Federal Reserve is starting a two-day meeting, with expectations of no interest rate changes.
Bitcoin and Altcoin Performance
Bitcoin (BTC) fell to around $79,700, marking a 0.4% decrease since midnight UTC. Ether (ETH) also declined by 0.5%. The DeFi index (DFX) experienced a more significant drop of 1.8%, reversing gains seen on Monday.
Market Context
Despite a rally in Asian tech stocks, including a 3.1% rise in South Korea’s Kospi, the cryptocurrency market did not benefit. U.S. stock index futures are slightly lower as major tech earnings are anticipated later this week. Meanwhile, oil prices increased, with U.S. crude nearing $102 a barrel.
Federal Reserve Meeting
The Federal Reserve begins a two-day meeting today, with an interest rate decision expected on Wednesday. Current predictions indicate around a 90% likelihood of no changes to rates at this meeting. Traders are looking for indications regarding potential rate increases before the end of the year. Notably, U.S. spot bitcoin ETFs saw inflows of $110 million on Monday, according to Farside Investors, ending a streak of two days of outflows.
This article is for information only and is not investment advice.