Bitcoin Slides Near $80,000 Ahead of Federal Reserve Decision

Bitcoin traded near $80,000 on Monday after falling about 2% earlier in the session. The digital asset briefly dropped below the $80,000 mark, touching approximately $79,330, before recovering to trade at $80,264. This movement occurred as traders reduced risk ahead of the Federal Reserve's Wednesday meeting. The central bank is scheduled to announce its decision on interest rates on that day. Bitcoin is currently down 2.7% on the week and remains about 36% below its all-time high of $126,080. The price had peaked above $86,000 in early October.

Ether dropped nearly 3% to just above $2,300, while XRP lost about 3% to $1.28. The Federal Reserve raised its target range to 3.75% to 4% in September. Analysts suggest that Bitcoin needs to reclaim $82,500 to restore confidence among buyers.

Investment flows in U.S. spot Bitcoin ETFs have shown significant outflows recently. These funds saw more than $773 million in net outflows on Thursday and Friday combined. Specifically, there were $635.5 million in net outflows on Thursday and a further $137.9 million in net outflows on Friday. Another report noted about $635 million in outflows on October 22.

South Korea's Kospi index fell 1% after Goldman Sachs strategists cut their 12-month target for the index by 25%. In the energy sector, Brent crude oil fell 2% from a six-month high to about $114 a barrel. The coming days will likely see continued volatility as market participants react to the Federal Reserve's upcoming decision and broader economic data.