Bitcoin slips below $80,000 as DeFi index drops 1.8% ahead of Fed decision
In brief
- Bitcoin fell 0.4% since midnight UTC to near $79,700, according to CoinDesk.
- CoinDesk's DeFi index (DFX) dropped 1.8%, the most of any CoinDesk index.
- South Korea's Kospi rose 3.1%, but the Asian tech rally failed to lift crypto.
- Fed's two-day meeting began Tuesday; CME FedWatch showed about 90% odds of no change.
- U.S. spot bitcoin ETFs drew $110 million Monday, according to Farside Investors.
DeFi gives back Monday's gain
Ether, the largest altcoin, lost 0.5% over the same window, according to CoinDesk. That's only slightly worse than bitcoin's move, but it fits the day's pattern: altcoins fell further than BTC.
DeFi took the hardest hit.
The CoinDesk DeFi index (DFX) dropped 1.8%, the most of any CoinDesk index. That's a sharp reversal from Monday, when DFX was the only CoinDesk index to gain (one day of outperformance, then straight back to the bottom of the table).
Asia rallies, crypto doesn't follow
Asian tech shares had a strong session, with South Korea's Kospi rising 3.1%. The advance didn't pull crypto along with it, CoinDesk reported.
Elsewhere, U.S. stock index futures edged lower ahead of big-tech earnings later in the week. Oil rose, and U.S. crude approached $102 a barrel.
All eyes on the Fed
The Federal Reserve began a two-day meeting on Tuesday, and the rate decision is due Wednesday. CoinDesk reported that CME's FedWatch tool showed around a 90% chance of no change in rates. A hold is the base case, so the focus moves to what policymakers signal about the months ahead. CoinDesk put it this way:
Traders will be looking for clues on whether another rate increase is likely before year-end.
ETF flows turned positive the day before the meeting. U.S. spot bitcoin ETFs took in $110 million on Monday, according to Farside Investors, ending two days of outflows. On Tuesday, bitcoin slipped back under $80,000.
