Bitcoin Drops to $79,817 as Traders Trim Risk Before the Fed’s Oct. 28 Rate Decision
Bitcoin slipped under $80,000 on Monday, Oct. 26, as investors pulled back ahead of the Federal Reserve's interest rate decision on Wednesday.
The Motley Fool reported that bitcoin traded at $79,817.06 in the early evening, down 0.3% over 24 hours and 2.4% over seven days.
For anyone holding bitcoin directly or through a fund, the move is modest in size but notable for its level. Bitcoin had been trading above $81,000 earlier in the week.
Prices Across the Major Coins
Ethereum traded at $2,313.61 on Oct. 26, down 0.6% on the day and 3.5% on the week, the Motley Fool said. Solana fell 0.9% to $100.30, a 3.4% decline over seven days.
Not every coin fell. BNB gained 2.2% over seven days to $741.88, and Zcash rose 8.8% to $1,222.90. XRP traded at $1.29.
ETFs Take the Heavier Losses
Exchange-traded funds (ETFs, which let investors buy a stake in bitcoin or ether through a brokerage account) fell harder than the coins.
The Motley Fool reported that the iShares Bitcoin Trust ETF (IBIT) fell 1.61% and the Fidelity Wise Origin Bitcoin Fund (FBTC) fell 1.66%. The iShares Ethereum Trust ETF (ETHA) lost 3.22%.
The selling follows a sharp reversal in fund flows last week. TECHi, citing Farside Investors data, reported that U.S. spot bitcoin ETFs had a net outflow (more money withdrawn than deposited) of $635.6 million on Oct. 22.
It was the largest single-day outflow of October and came one session after a $524.8 million inflow.
IBIT lost $254.1 million that day, FBTC $217.5 million, ARKB $109.4 million and GBTC $29.5 million. U.S. spot ether ETFs shed another $110 million.
What Is Driving the Caution
The Motley Fool attributed the latest slide mainly to traders reducing exposure before the Fed announcement.
It said the market was pricing in just an 8% chance of a rate hike, but that uncertainty over the decision and the commentary afterward could keep volatility elevated. Net Worth has covered the rate outlook separately in Fed rate hike pricing.
Oil has added to the pressure. TECHi reported that Brent crude settled at $113.17 on Oct. 22, its highest level since May 4, and that the Nasdaq Composite dropped 2.6% that day, its steepest fall since June 5.
TECHi said higher oil complicates the inflation path the Fed must weigh at its Oct. 27-28 meeting, and that a prolonged high-rate outlook has historically weighed on assets that pay no yield, such as bitcoin.
A Motley Fool report on Oct. 22, carried by Yahoo Finance, put bitcoin at $81,263.73 that day, down 3.29%, with oil above $111 a barrel.
It also noted that bitcoin's share of the total crypto market was at its highest since May, and that altcoins (cryptocurrencies other than bitcoin) were bearing the brunt of the decline.
Levels Traders Are Watching
The Yahoo-carried report said bitcoin ETF inflows totaled about $1.07 billion over three sessions earlier that week. It described the Oct. 22 selloff as a test of whether that momentum would hold.
TECHi called $80,000 the market's shorthand for whether the October bounce has failed.
For ether, the Motley Fool's Oct. 22 report said the $2,300 level was the key near-term test for buyers, and the price sits just above it. For Solana, the immediate question was whether it could hold $100, a level it is now barely above.
That report also noted that Solana's Alpenglow network upgrade went live on Oct. 22 without offsetting the broader decline.
The Federal Reserve is scheduled to announce its decision on Wednesday, Oct. 28.