Bitcoin price today fell 0.79% to $79,468, slipping below the $80,000 level as investors turned cautious ahead of the US Federal Reserve’s interest rate decision on October 28. Withdrawals from Bitcoin ETFs and losses among traders betting on higher prices have added to the selling pressure.
The next move depends on whether Bitcoin can hold near $79,000 or recover above $81,000. Traders are also watching the Fed’s comments for clues about future interest rate decisions.
Why Is Bitcoin Price Dropping?
Fed Decision and Tech Earnings Weigh on Bitcoin
Investors are reducing risk ahead of the Fed’s October 28 meeting. Although markets largely expect interest rates to remain unchanged, the Fed’s comments on inflation and future rate cuts could influence Bitcoin.
High oil prices have added to inflation concerns. If inflation stays high, the Fed may keep interest rates elevated for longer, which could reduce demand for assets such as Bitcoin.
Investors are also watching earnings from Microsoft, Alphabet, and Amazon. Weak results or concerns about their AI spending could put further pressure on technology stocks and the wider crypto market.
Bitcoin ETF Outflows Add Selling Pressure
US spot Bitcoin ETFs recorded around $773.5 million in net outflows over October 22 and 23, according to reported fund-flow data. These withdrawals suggest that some investors reduced their Bitcoin exposure ahead of this week’s major events.
However, ETF outflows alone do not explain the entire price decline. Broader market uncertainty and selling by leveraged traders have also contributed to the fall.
Bitcoin Falls Below $80,000 as Traders Close Positions
Bitcoin has dropped below its $80,000 support level and its 50-day exponential moving average near $80,800. The decline has increased pressure on traders who expected prices to rise.
About $33.56 million in Bitcoin positions were liquidated over 24 hours, including approximately $18.23 million in long positions. When prices fall, exchanges can automatically close leveraged positions, adding to selling pressure.
What’s Next for Bitcoin Price?
Bitcoin is trading near $79,500, with traders watching the $79,000 support level and resistance between $80,800 and $81,000.
If Bitcoin falls further: A sustained break below $79,000 could push the price toward $78,000. If selling continues, the next major level to watch is $75,000.
If Bitcoin recovers: A move above $80,800–$81,000 could indicate that buyers are returning. Bitcoin would then face resistance around $82,200–$82,500.
The Federal Reserve’s decision on October 28 could influence which direction Bitcoin takes next. A less hawkish message could support a recovery, while concerns about inflation and interest rates could lead to further selling.
Can Bitcoin Price Recover From $79,000?
Analyst CGT Trader has pointed to a concentration of liquidity around $79,000. This means Bitcoin could briefly fall toward that level before recovering, although a rebound is not guaranteed.
Analyst Michael Poppe is watching for Bitcoin to reclaim $81,000 or fall toward $79,000 and then recover quickly. Such a recovery could improve the short-term outlook.
Meanwhile, Santiment data reportedly shows that Bitcoin’s number of non-empty wallets has declined by around 30,000 since October 16, bringing the total to approximately 59.95 million. This may indicate that some smaller holders are leaving the market after weeks of weak price action, but the decline does not confirm that Bitcoin has reached a bottom.
For now, Bitcoin needs to hold support near $79,000 and recover above $81,000 to show signs of strength. A sustained fall below $79,000 would increase the risk of further losses toward $78,000 and $75,000.
Was this writing helpful?
Story Ends Here
Read the Next News