Bitcoin traded near $80,000 on Monday, declining approximately 2% earlier in the session. The price has dipped below that level multiple times in recent days before recovering.
Selling pressure has intensified in recent weeks. Spot Bitcoin ETFs recorded roughly $635 million in outflows on October 22, while a drop below $80,000 last week triggered approximately $800 million in liquidations of long positions.
Fed Decision Looms Large
The upcoming Federal Reserve meeting, which concludes October 28, represents a key event for the market. The Fed raised its target rate range to 3.75% to 4% in September, with minutes indicating another increase could occur by year-end.
Current market odds favor the Fed holding rates steady, though these odds have shifted in recent days. Traders are monitoring Fed Chair Kevin Warsh's remarks for indications of a potential December rate hike.
Higher interest rates typically redirect capital away from riskier assets, including cryptocurrencies. A rate hold could maintain bitcoin prices roughly between $80,000 and $88,000, while a hike could push prices toward the lower end of that range.
Broader Market Context
Geopolitical tensions have also affected market sentiment. Oil prices rose above $100 per barrel in early September amid U.S.-Iran escalations, with higher energy costs contributing to inflation concerns that influence Federal Reserve policy decisions.
U.S. equities gained ground Monday as investors prepared for a busy week of major technology earnings and the Fed's rate decision. The Nasdaq rose 0.8%, the S&P 500 gained 0.6%, and the Dow climbed 0.3%.
Price Performance
Bitcoin price stood at $80,215 at the time of reporting, down approximately $4,000 or 4.75% for the month. Over the past month, prices ranged from a high of $86,806.95 to a low of $79,397.76. The cryptocurrency peaked above $86,000 in early October before declining toward $80,000 in the second week, with a brief rally around October 21 reaching near $84,000 before those gains dissipated. Trading volume over the preceding 24 hours reached approximately $18.12 billion.
Bitcoin remains substantially below its all-time high of $126,277.05.
