Bitcoin Crashes Below $80,000 as Traders Flee Risk Before Fed Decision

Bitcoin fell below $80,000 on Wednesday as traders moved to reduce risk ahead of the U.S. Federal Reserve's upcoming policy meeting, according to CoinDesk. Ether and XRP led losses among the major cryptocurrencies, underlining broad weakness across digital assets as investors positioned defensively before the central bank's rate decision.

The pullback coincided with another blow to the AI trade in Asia, where Goldman Sachs cut its target for South Korea's Kospi index by 25%. The move underscored growing caution toward artificial-intelligence-linked equities and spilled over into crypto markets, where sentiment has grown increasingly sensitive to shifts in global risk appetite. Bitcoin's slide below the $80,000 threshold marks a notable psychological and technical level for the market.

The declines highlight how closely crypto is tracking macroeconomic and equity-market signals, with the Fed meeting now the key near-term catalyst for direction. A hawkish outcome could extend the de-risking, while a more accommodative stance may help stabilize prices. Traders will also watch whether the AI-driven equity sell-off in Asia deepens, as further weakness there could weigh on digital assets in the sessions ahead.