Bitcoin dropped below $80,000 on October 26 as investors adjusted their positions in anticipation of the Federal Reserve’s upcoming interest rate announcement. The move sparked renewed concerns that the world’s largest cryptocurrency may extend its recent losses.
ETFs See Major Withdrawals, Bitcoin Stalls
BTC reached as low as $79,330 during Monday’s trading session before attempting to stabilize near the $80,000 mark, a price level closely watched by traders. The recent weakness comes after Bitcoin failed to recover momentum toward $85,000 last week.
Large outflows from US spot Bitcoin ETFs accompanied the slide. Farside Investors’ data showed net redemptions totaling $635.6 million on October 22 and $137.9 million on October 23. These two sessions alone accounted for $773.5 million pulled from spot Bitcoin funds.
Across Thursday and Friday, spot Bitcoin ETF outflows in the US exceeded $770 million, erasing much of the prior week’s inflows, although the funds managed to finish the five-day period with a net positive balance.
Analysts at Coinpaper reported that the initial $635.6 million ETF withdrawal occurred alongside mounting pressure on the broader crypto market. While these outflows marked a significant reversal, ETF activity remains one of several factors shaping Bitcoin’s price direction.
Other market variables such as equities prices, bond yields, and investor expectations for future monetary policy have also influenced sentiment toward digital assets during recent sessions.
Fed Rate Decision in Focus
Ahead of the Federal Open Market Committee’s next policy meeting on October 27–28, markets widely anticipate that the US central bank will retain interest rates at current levels when it issues its decision on Wednesday at 2:00 p.m. Eastern Time.
Nevertheless, ongoing inflationary pressures have left some investors worried that the Federal Reserve could favor keeping borrowing costs elevated or even opt for another rate hike in December.
The outcome holds particular significance for Bitcoin. When monetary policy remains tight, the dollar and US Treasury yields typically strengthen, reducing risk appetite in markets and dampening demand for speculative assets such as cryptocurrencies.
Coinpaper previously pointed to the possibility that even an unchanged rate decision may not immediately spur a rebound in crypto prices, as broader risk sentiment and economic outlooks weigh heavily on digital asset markets.
QCP Capital, a digital asset trading firm, identified the $80,000–$82,000 range as a notable accumulation zone for Bitcoin, suggesting that price action in this area warrants careful attention from traders and investors.
The US Federal Reserve plays a key role in steering economic conditions, with its rate decisions closely tracked by cryptocurrency traders for signs of changing macroeconomic policy.
Mini dictionary: QCP Capital is a Singapore-based digital asset trading and market-making firm, focusing on cryptocurrency derivatives and institutional trading solutions.
Key Levels and Scenarios for BTC Price
Short-term Bitcoin performance depends largely on whether buyers regain control around the $80,000 level and can build a foundation above this threshold. A failure to hold may lead to a retest of the recent $79,200 low, with further support levels identified at $78,100 and $76,800.
| Support Level | Potential Downside |
|---|---|
| $79,200 | Initial test |
| $78,100 | Secondary support |
| $76,800 | Tertiary support |
| $75,000 | Deeper bearish target |
Should the price break below these levels, analysts believe the path toward $75,000 becomes increasingly likely, representing roughly a 6% retreat from $80,000. This perspective matches prior assessments from Coinbase regarding Bitcoin’s downside risk, though such outcomes remain contingent and not assured.
If buyers can push BTC above $82,000, the recovery could extend back to the $84,000–$85,000 range, where recent selling pressure reemerged. Broader forecasts for year-end still span a wide range, with estimates showing possibilities for either deeper declines to $75,000 or a rally toward $90,000–$100,000.
