Crypto Retreats as Fed Meeting Looms; Tech and AI Stocks Pressure Markets

Cryptocurrency markets slipped Monday morning in Asia, with Bitcoin retreating nearly 2% to about $79,800 as traders reduced exposure ahead of this week’s Federal Reserve decision. The broader risk-off tone and a renewed pullback in AI-related equities weighed on tokens and tech stocks across the region.

Selling was broad-based. Ether fell almost 3% to just above $2,300, while XRP declined about 3% to $1.28. SOL dipped 2% and hovered near $100. Other major coins such as DOGE, ZEC, HYPE and BNB dropped between 1% and 2%, with TRX the lone notable gainer, up a fraction under 1%, according to CoinDesk data.

Fed expectations and macro risks

Market participants are focused on the Federal Reserve’s announcement on Wednesday and the subsequent press conference. Traders will scrutinize Chair Kevin Warsh’s remarks for signals about a possible December rate hike — language that could meaningfully influence risk asset flows. Higher interest rates typically reduce liquidity and make borrowing costlier, which tends to pressure speculative assets such as crypto and high-growth equities.

Jeff Mei, chief operating officer at crypto exchange BTSE, warned that the combination of soaring oil prices, an intensifying U.S.–Iran geopolitical flashpoint, and persistent inflation could prompt the Fed to adopt a firmer stance. “An aggressive tone from the Fed would imply higher rates and less liquidity for crypto and stocks,” he said in an email to CoinDesk.

Regional markets and the AI selloff

Across Asia, AI-related selling persisted. South Korea’s Kospi — sensitive to chipmaker performance because of heavyweights like Samsung Electronics — fell about 1% after Goldman Sachs trimmed its 12-month target for the index by 25%. Japanese chip stocks led losses on the Nikkei, and Chinese AI model developers posted declines. Nasdaq 100 futures were modestly lower as investors braced for earnings from major U.S. tech firms this week.

The MSCI Asia Pacific Index dropped 0.1%, extending a run of four consecutive losing weeks — its longest stretch of losses since April. In fixed income and commodities, Treasuries gained while oil eased off a recent high; Brent crude retreated roughly 2% to near $114 a barrel after President Donald Trump suggested a pivotal decision on engaging with Iran.

Technical levels and market outlook

From a technical perspective, Bitcoin must reclaim the $82,500 level — the support it lost last Thursday — before traders will likely view the recent pullback as a temporary pause. Until that floor is convincingly retaken, downside vulnerability remains amid the uncertain macro backdrop and the Fed’s forthcoming guidance.