Bitcoin Falls Below $80,000 as Fed Meeting Begins
Bitcoin dropped below $80,000 on Tuesday as the Federal Reserve opened its two-day policy meeting, with the world's largest cryptocurrency trading at $79,700 near the session low — even as technology stocks across Asia posted their strongest gains in weeks.
Bitcoin was quoted at $79,700, down 0.4% since midnight UTC, with ether declining 0.5% over the same period. The move keeps BTC below the psychologically significant $80,000 level for the second consecutive session. It echoes a pattern seen in earlier pullbacks this year, including a stretch when Bitcoin traded below $77,000 as Fed rate hike expectations weighed on risk assets.
The Crypto Fear & Greed Index sits at 48, classified as Neutral, a reading that reflects neither panic selling nor speculative enthusiasm. Bitcoin’s market capitalization stood near $1.6 trillion, with 24-hour trading volume around $24.6 billion — active but not elevated enough to suggest a directional breakout is imminent. For related coverage, see ETH Falls Below $2,500 as Liquidations Hit $759M.
South Korea’s Kospi surges while crypto lags behind
The sharpest illustration of the current disconnect came from South Korea. The Kospi gained 3.1% during the Asian session, led by technology stocks benefiting from renewed optimism around AI infrastructure spending. The same day, CoinDesk’s DeFi index fell 1.8%, the largest single-day decline among its tracked indexes.
This divergence is notable because Korean retail participation has historically amplified crypto rallies during Asian trading hours. That channel appears blocked for now, with capital flows favoring domestic equities over digital assets. A parallel narrative is building around AI infrastructure: CoinDesk’s live coverage noted that AI buildout is drawing capital that might otherwise rotate into crypto, compounding the outperformance gap.
Broader context reinforces the trend. Bitcoin is down 2.5% over the past week while the Nasdaq gained more than 1% the prior session. The gap between traditional tech and crypto has widened consistently through October, a period when Bitcoin’s earlier drop below $83,000 triggered $697 million in liquidations that reset positioning across the derivatives market.
Fed meeting opens with rates expected on hold
The Federal Reserve began its scheduled October 27-28 FOMC meeting Tuesday, one of eight regularly scheduled meetings the committee holds each year. The policy decision is expected Wednesday, and CME FedWatch pricing cited by CoinDesk pointed to roughly a 90% probability that rates remain unchanged — though that consensus itself creates a different kind of risk if the Fed’s accompanying statement shifts tone on inflation or future cuts.
For crypto markets, the meeting is less about the rate decision itself and more about the language that accompanies it. Any signal that the Fed is pushing rate cuts further into the future tightens the liquidity environment that has supported risk assets through much of 2025 and early 2026. Bitcoin has shown sensitivity to this dynamic before: the previous stretch when BTC fell below $79,000 coincided with Fed hike odds climbing near 60%, illustrating how quickly policy pricing can translate into spot pressure.
Even a no-change decision carries forward-looking weight. Traders will parse the post-meeting statement for any revision to the Fed’s timeline on easing, particularly given that inflation data in the preceding weeks has been mixed. A hawkish hold, where rates stay flat but the Fed signals fewer cuts ahead, would likely extend Bitcoin’s current consolidation below $80,000.
What traders are watching into Wednesday’s decision
The immediate question is whether Bitcoin can reclaim $80,000 before the Fed statement drops Wednesday afternoon. A sustained close above that level would neutralize the bearish signal from this week’s breach; continued pressure below it risks drawing in technical sellers who treat round numbers as meaningful thresholds. The broader derivatives market shows no confirmed data on liquidation levels or funding rates at this time, limiting visibility into how much leveraged positioning remains exposed.
Risk sentiment following the Fed communication is the second variable. If the statement is interpreted as neutral, crypto could recover in line with broader risk assets. If it reads as hawkish, the current divergence between Asian tech equities and digital assets may deepen. An earlier episode this year, when a Bitcoin drop below $83,000 cascaded into nearly $700 million in forced liquidations, serves as a reminder of how quickly positioning can unwind once a key level breaks.
The Asian tech rally and the Kospi’s 3.1% gain should be read as market backdrop rather than a correlated signal for crypto. The two asset classes are responding to different catalysts this week: Asian equities are tracking AI infrastructure sentiment and domestic earnings, while Bitcoin is being steered almost entirely by Fed policy expectations and the macro liquidity outlook. Until those narratives converge, the sub-$80,000 level is likely to remain contested.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.