Bitcoin falls below $80,000 before Wednesday's Fed decision at 11pm Pakistan time

Bitcoin price today slipped below $80,000 in Asian trading on Monday 26 October, falling nearly 2% to about $79,800 as traders cut risk before this week's US Federal Reserve meeting, CoinDesk reported. At the interbank dollar rate of Rs 276.82, one bitcoin is worth roughly Rs 2.21 crore (Rs 22.09 million).

The rest of the market

CoinDesk said bitcoin needs to get back above $82,500, the floor it lost last Thursday, before buyers can treat the fall as a pause rather than a new leg down.

Why the Fed matters for crypto

The Fed announces its decision on Wednesday 28 October. The statement comes at 2pm in Washington, which is 11pm Pakistan time, and Chair Kevin Warsh's press conference follows at about 11:30pm PKT. Markets do not expect a change in rates this week. What they are watching is whether Warsh signals a hike in December: higher US rates tend to pull money out of risky assets such as crypto.

"We're watching how strongly the chair hints at a December hike, that's what matters for crypto," Jeff Mei, chief operating officer of the exchange BTSE, told CoinDesk.

Oil is the other worry. Brent crude fell 2% from a six-month high to about $114 a barrel after President Trump said it was "getting to be decision time" on Iran. Expensive oil keeps inflation up, which is the reason the Fed might raise rates.

For readers in Pakistan

Rupee prices quoted on peer-to-peer apps can differ from the interbank conversion above, so check the rate before you trade. Track the daily move on our bitcoin price page and ether price page, and convert any amount with the currency converter. If you sold crypto at a profit, the capital gains tax calculator shows how the gain is treated.