Crypto · $BTC/USD
Bitcoin Gives Back Early Gains Ahead of Fed as Strategy Wins Vote for Daily Dividends
Image: EivindPedersen via Pixabay
The largest cryptocurrency slips back toward $80,400 by midday, while Strategy shareholders approve daily payouts on its preferred stock.
By Emmanuel Cruz ·
Bitcoin surrendered an early-morning advance on Wednesday and was little changed by midday in New York, as crypto traders joined stock and bond investors in waiting for the Federal Reserve's policy decision.
The largest cryptocurrency climbed about 2% to just above $81,000 during Asian trading hours, extending a rebound from Monday's dip below $80,000, according to CoinDesk [1]. The move faded as the U.S. session approached. By about 8:40 a.m. ET, bitcoin had dropped roughly $1,000 to around $80,600, and by midday it was trading near $80,430, down about 0.2% over 24 hours [1]. Yahoo Finance showed bitcoin at about $80,427 around noon ET [2].
Other major tokens followed a similar path. Ether, which had risen above $2,350 overnight, was trading near $2,331 at midday, down about 0.75% [1][3]. Solana hovered around $101 and XRP near $1.31 [1]. Privacy-focused Zcash had been one of the stronger performers overnight, rising about 8% to roughly $1,320 after a selloff on Monday [3].
The pullback came as the U.S. dollar index traded close to its 2026 high of 102.16, CoinDesk reported [1]. A firmer dollar often coincides with weaker demand for risk assets such as crypto. Rate expectations are also in focus. The Fed is set to announce its decision at 2 p.m. ET and is widely expected to hold its benchmark rate in a range of 3.75% to 4%, with markets watching whether Chair Kevin Warsh signals a possible increase in December [1]. The two-year Treasury yield rose 3 basis points to 4.77% on Wednesday as traders hedged against that possibility [1]. Earlier in the day, the Bank of Canada raised its own policy rate by a quarter point to 2.5% [1].
Analysts are watching technical levels for signs that the recovery from this year's lows is durable. CoinDesk noted that a daily close above $82,500 could signal the rebound is gaining momentum [3]. Galaxy's head of firmwide research, Alex Thorn, wrote in a note that bitcoin is in "the accumulation phase that has preceded every prior advance," and said the market likely bottomed in June, when it traded below $58,000 [3].
In corporate crypto news, Strategy said in a regulatory filing that its stockholders approved changes allowing four classes of its perpetual preferred stock to pay dividends daily, based on preliminary results from a special meeting held Wednesday [4]. The change takes effect for its variable-rate Stretch preferred shares, which trade under the ticker STRC, on November 1, 2026, and for its Strife, Strike and Stride preferred series on January 1, 2027, subject to the filing of amended certificates [4]. Under the new structure, record dates will fall on every calendar day, including weekends and holidays [4].
Michael Saylor posted that 99.3% of votes cast were in favor, according to CoinDesk [1]. STRC, which currently yields 12%, rose 0.2% to $99.72, close to its $100 par value [1]. CoinDesk noted that trading at par is the level at which Strategy could resume issuing the shares to fund bitcoin purchases rather than buying them back [1].
Elsewhere, Coinbase shares were down about 2% before the opening bell ahead of the exchange's quarterly report on Thursday [1].
What to watch next: the Fed's statement and Warsh's press conference this afternoon, followed by results from Microsoft and Alphabet after the close, which could sway broader risk appetite. Coinbase's earnings on Thursday will offer a read on retail crypto trading activity, and Strategy's first daily STRC dividend record date under the new regime is set for early November [1][4].
Sources:
[1] CoinDesk, "Live updates: Bitcoin sheds early gains; Strategy's STRC moves to daily dividends", October 28, 2026. https://www.coindesk.com/business/2026/10/28/live-updates-bitcoin-climbs-above-usd81-000-as-majors-rally-ahead-of-fed-decision
[2] Yahoo Finance, "Stock market today: Nasdaq wavers, S&P 500 and Dow climb ahead of Fed decision, Big Tech earnings", October 28, 2026. https://finance.yahoo.com/markets/live/stock-market-today-wednesday-october-28-dow-sp-500-nasdaq-fed-meeting-decision-big-tech-earnings-130508769.html
[3] CoinDesk, "Bitcoin nears $81,000 ahead of Fed decision as ZEC jumps 8%", October 28, 2026. https://www.coindesk.com/markets/2026/10/28/bitcoin-nears-usd81-000-ahead-of-fed-decision-as-zec-jumps-8
[4] Strategy Inc., "Form 8-K", October 28, 2026. https://www.sec.gov/Archives/edgar/data/0001050446/000119312526435451/mstr-20261028.htm
This article was produced with AI assistance. It is for informational purposes only and is not financial advice. StockVolt and its authors may hold positions in securities mentioned.