Crypto · $BTC/USD
Bitcoin Hovers Below $80,000 as Traders Cut Risk Ahead of Fed Decision
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The largest cryptocurrency slips under a key round number after spot ETF outflows and leveraged liquidations, with Fed, PCE and options expiry ahead.
By Emmanuel Cruz ·
Bitcoin traded just below $80,000 in the early hours of Tuesday as crypto traders reduced exposure ahead of the Federal Reserve's policy decision on Wednesday and a busy week of U.S. economic data and technology earnings.
The cryptocurrency was near $79,470 as of about 3:40 a.m. ET, down 0.79% on the day, according to Coinpedia [1]. It had stood near $80,130 at midnight UTC, according to KuCoin's daily market report [2]. Analytics Insight, citing CoinGecko data, put Bitcoin's market value near $1.60 trillion and said the token was down more than 4% for the month [3]. Over the weekend, Bitcoin briefly fell to about $79,100 after failing the previous week to recover toward $85,000 [4].
Several pressures have combined. U.S. spot Bitcoin exchange-traded funds recorded net outflows of about $635.6 million on October 22 and about $137.9 million on October 23, ending a three-day run of inflows, according to Farside Investors data cited by crypto.news [4]. BlackRock's IBIT and Fidelity's FBTC accounted for $471.6 million of the October 22 withdrawals, although the five-day balance for the funds remained positive at about $301.2 million [4]. Ether ETFs posted about $221 million in outflows, their fourth straight week of withdrawals, Trending Topics reported [5].
Leverage has amplified the moves. About $154 million in crypto derivatives positions were liquidated over 24 hours through Monday, about $118 million of them bets on rising prices, according to CoinGlass data cited by crypto.news [4]. Coinpedia counted about $33.6 million in Bitcoin liquidations over the 24 hours to Tuesday morning [1].
Not all signals point to heavy selling. Crypto research firm Mudrex noted that only 19,800 Bitcoin moved to exchanges over 24 hours, which it said suggests limited selling pressure, according to Analytics Insight [3]. The Crypto Fear and Greed Index stood at 50, a neutral reading, down from 59 a week earlier [5].
The macro backdrop is the main driver. Markets price roughly a 90.6% chance that the Fed holds its target range at 3.75% to 4.00% on Wednesday, but traders are watching whether Chair Kevin Warsh signals another increase in December [3][5]. Oil prices above $110 a barrel have kept inflation concerns alive [3]. A more hawkish Fed would tighten liquidity for both crypto and stocks, Trending Topics noted [5]. Jeff Mei, chief operating officer of exchange BTSE, told CoinDesk that "investors already appear to be reducing risk" as Bitcoin fell below $80,000 [5].
Analysts quoted across crypto outlets describe a range-bound market. Support is cited near $79,000 to $79,600 and resistance between $80,500 and $81,000 [1][2]. KuCoin's report noted that Bitcoin repeatedly found buyers in the $79,400 to $79,600 zone overnight [2].
What to watch: the Fed decision and press conference on Wednesday; September personal consumption expenditures inflation data on Thursday, October 29; and an estimated $11 billion in Bitcoin options expiring on Friday, October 30 [4]. Results from Microsoft, Alphabet and Amazon this week will also be watched, as their AI spending plans could weigh on both technology stocks and crypto, Coinpedia noted [1].
Sources:
[1] Coinpedia, "Why is Bitcoin Price Down Today? [October 27th]", October 27, 2026. https://coinpedia.org/news/why-is-bitcoin-price-down-today-october-27th/
[2] KuCoin News, "Crypto Daily Market Report – October 27, 2026", October 27, 2026. https://kucoin.com/news/articles/crypto-daily-market-report-october-27-2026
[3] Analytics Insight, "Crypto Prices Today: Bitcoin Slips Below USD 80,000 as Traders Await Fed Verdict", October 27, 2026. https://www.analyticsinsight.net/price-analysis/crypto-prices-today-bitcoin-slips-below-usd-80000-as-traders-await-fed-verdict
[4] crypto.news, "Why is Bitcoin price down today? BTC slips below $80K ahead of Fed decision", October 26, 2026. https://crypto.news/why-is-bitcoin-price-down-today-fed-etf-outflows/
[5] Trending Topics, "Bitcoin Falls Below $80,000 as Investors Take Cover Ahead of the Fed", October 26, 2026. https://www.trendingtopics.eu/bitcoin-below-80000-dollars-fed/
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.