Crypto · $BTC/USD
Bitcoin Slips Below $80,000 as Tech Selloff and Hawkish Fed Hold Trigger Liquidations
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Roughly $356 million in crypto futures positions were wiped out as Nasdaq futures fell and traders priced a December rate hike.
By Noris Ortiz ·
Bitcoin fell back below $80,000 during Asian trading hours on Thursday, giving up a two-day rebound as a selloff in technology shares and a hawkish tone from the Federal Reserve pushed traders to cut risk [1].
The largest cryptocurrency dropped from above $81,700 to about $79,800 overnight, according to CoinDesk [1]. Ether traded near $2,326 in the early hours of Thursday, and XRP and Solana were also pulled lower [1]. The move forced out leveraged bets: about $356 million of crypto futures positions were liquidated over 24 hours, including $205 million of long positions, with bitcoin futures accounting for $94 million and ether futures for $72 million [1].
The trigger came largely from outside crypto. Alphabet shares fell 10.2% in premarket trading after weak search advertising results and a surge in cash burn tied to AI spending, and Nasdaq 100 futures were down 1.01% as of 5:18 a.m. ET [2]. In Seoul, Samsung Electronics shares fell after its chip unit's quarterly profit missed analyst estimates, adding to the pressure on technology-linked assets [1].
Monetary policy is the other weight. The Fed kept its target range at 3.75% to 4% on Wednesday, but the 10-2 vote included two officials, Lisa Cook and Beth Hammack, who preferred a quarter-point increase [3]. CoinDesk characterized the outcome as a hawkish hold and noted that Chair Kevin Warsh said progress on inflation is being made but that price pressures remain too high [1]. Futures markets showed more than an 81% probability of a rate hike in December, based on CME FedWatch data cited by Reuters [2]. ING expects another increase in December, following the Fed's hike in September, according to CoinDesk [1].
Higher real yields can make it harder for speculative assets to attract capital, because investors can earn more from safer holdings, CoinDesk noted [1]. BlackRock's Rick Rieder cautioned investors against making a "heroic directional call" on rates [1]. The 10-year Treasury yield was near 5.00% in Asian trading after briefly reaching about 5.04% on Wednesday [4].
Several events on Thursday could set the next direction. The September personal consumption expenditures price index, the Fed's preferred inflation gauge, is expected to show headline inflation of 3.6% year over year, up from 3.4%, with core inflation at 3.1% [5]. A hotter reading would likely reinforce expectations for a December hike, while a softer one could ease some pressure on risk assets. The first estimate of third-quarter GDP is also due [5].
Crypto-linked companies are in the spotlight as well. Coinbase and Strategy, the largest corporate holder of bitcoin, both appear on Thursday's earnings calendar [5]. Results from both companies are closely tied to bitcoin's price and trading activity, so their reports and any comments on demand could feed back into sentiment toward the broader market. Amazon's results after the close will also be watched as a gauge of sentiment toward AI spending, which has been driving moves in both stocks and crypto this week [2].
Sources:
[1] CoinDesk, "Bitcoin dips below $80,000 as Samsung-led tech jitters and a hawkish Fed weigh on crypto", October 29, 2026. https://www.coindesk.com/markets/2026/10/29/bitcoin-dips-below-usd80-000-as-samsung-led-risk-aversion-in-tech-and-a-hawkish-fed-weigh-on-crypto
[2] Reuters via Yahoo Finance, "Nasdaq futures fall 1% as Alphabet results intensify AI spending fears", October 29, 2026. https://finance.yahoo.com/markets/stocks/articles/nasdaq-futures-slide-mixed-big-083556706.html
[3] Federal Reserve, "Federal Reserve issues FOMC statement", October 28, 2026. https://www.federalreserve.gov/newsevents/pressreleases/monetary20261028a.htm
[4] Associated Press, "Asian shares and U.S. futures are mixed after Google parent Alphabet's earnings disappoint", October 29, 2026. https://www.ksat.com/business/2026/10/29/asian-shares-and-us-futures-are-mixed-after-google-parent-alphabets-earnings-disappoint/
[5] Yahoo Finance, "Stock market today: Dow rises, S&P 500 and Nasdaq futures fall as Alphabet stock sells off, AI jitters return", October 29, 2026. https://finance.yahoo.com/markets/live/stock-market-today-thursday-october-29-dow-sp-500-nasdaq-alphabet-microsoft-081708101.html
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.