According to CoinGecko data at 11:49 UTC on Tuesday, October 27, Bitcoin changed hands at $79,786, marking a 0.58% decline over a 24-hour period. As the cryptocurrency lingers beneath the $80,000 threshold, market participants look ahead to Wednesday’s Federal Reserve rate announcement and ponder the factors driving the downturn.
Why is Bitcoin dropping? Analysts point to pressure on technology stocks, uncertainty over interest rates and recent ETF withdrawals. Monday’s return to ETF inflows offers a counterweight as investors wait for the Fed’s guidance.
Bitcoin Stays Below $80,000 as the Fed Meeting Begins
The Fed’s two-day meeting begins Tuesday, with CME FedWatch indicating roughly a 90% chance that rates remain unchanged. Investors will also watch for signals about another increase before year-end.
Read More: How Bitcoin ETF Weekly Flows Kept $301M After Two Days of Outflows
Bitcoin failed to follow an Asian technology rally: South Korea’s Kospi gained 3.1%, while US stock futures edged lower ahead of major technology earnings later this week. The token had already touched $79,332 before recovering above $80,000 on Monday.
BTC Traders Watch $75,000 Support and $82,000 Recovery
HashKey senior researcher Tim Sun attributed the broader decline to a correction in global risk assets, skepticism about AI stock valuations, ETF outflows and the unwinding of leveraged positions. He identified $75,000 as a key downside support level and expected volatility to remain elevated.
Stephen Wundke, strategy and revenue director at Algoz, called $80,000 psychologically important but cautioned that weekend breaks can mislead when trading volumes are low. Continued trading below $82,000 could precede a broader pullback, he said, while macroeconomic uncertainty persists.
ETF Investors Weigh Fresh Demand Against Recent Withdrawals
US spot Bitcoin ETFs received $110 million on Monday, per Farside Investors, ending two sessions of outflows. That followed withdrawals of $635.5 million on Thursday and $137.9 million on Friday, tracked by SoSoValue. Despite those withdrawals, the funds finished the previous week with about $301 million in net inflows, breaking a two-week losing streak.
As of Monday’s coverage, October still showed roughly $314 million in net withdrawals. Capital.com senior market analyst Daniela Hathorn said Bitcoin’s recovery could remain fragile unless stronger institutional demand accompanies better market sentiment. Subsequent daily ETF flows will test whether Monday’s buying continues.
The Fed and Inflation Set Bitcoin’s Next Tests
The October 28 rate decision is scheduled for 2 p.m. Eastern Time. The September Personal Consumption Expenditures price index follows on October 29, adding another inflation test immediately after the meeting.
Hathorn warned that a more hawkish Fed could strengthen the dollar and pressure risk assets. Major technology earnings could also influence Bitcoin through broader investor sentiment. For traders, the immediate watch points are Sun’s downside support and Wundke’s recovery level, alongside the Fed’s language and inflation release. For ETF investors, sustained inflows would strengthen the case for a recovery; renewed withdrawals would leave institutional demand under pressure.
FAQ
What time is the Federal Reserve’s October 28 rate decision scheduled?
The announcement is due at 2 p.m. Eastern Time on Wednesday, October 28. It concludes the two-day meeting that begins October 27.
When will the September PCE inflation report be released?
The Bureau of Economic Analysis is scheduled to publish it on October 29. The release gives investors a fresh inflation gauge the day after the Fed decision.
How much did US spot Bitcoin ETFs receive on Monday?
Farside Investors put Monday’s net inflow at $110 million. The positive session followed withdrawals on both Thursday and Friday.
Which downside support level is HashKey researcher Tim Sun watching?
Sun identified $75,000 if Bitcoin declines further. He paired that level with an expectation of elevated volatility, rather than a forecast that Bitcoin must reach it.
Why does Algoz’s Stephen Wundke consider $82,000 important?
Wundke said Bitcoin needed to hold $82,000 to support the bullish case while macroeconomic uncertainty continues. He warned that staying below it could see a broader pullback in the coming weeks.
This article is for information only and is not financial advice.