Key takeaways
- Bitcoin falls below $80,000 before Wednesday's Fed decision
- Spot Bitcoin ETFs lose $773.5 million across two sessions
- Losing $79,000 could expose deeper downside support
Bitcoin slipped below $80,000 again on October 26 as investors reduced exposure to risk assets ahead of the Federal Reserve's upcoming interest-rate decision, raising concerns that the cryptocurrency could extend its latest decline.
BTC fell toward $79,330 during Monday's trading before fluctuating around the psychologically important $80,000 level. The renewed weakness follows a failed recovery toward $85,000 last week and nearly $774 million in US spot Bitcoin ETF withdrawals across Thursday and Friday.
Bitcoin Falls Below $80,000 as ETF Withdrawals Accelerate
Bitcoin's latest decline follows an unsuccessful attempt to recover from the weekend selloff.
BTC previously touched approximately $79,200 on October 24 before rebounding toward $80,900 the following day. However, the recovery failed to establish sustained momentum, as Coinpaper's earlier Bitcoin price analysis highlighted.
Institutional demand has also weakened sharply.
According to Farside Investors' ETF flow data, US spot Bitcoin funds recorded $635.6 million in net outflows on October 22, followed by another $137.9 million on October 23.
The combined $773.5 million withdrawal erased a substantial portion of the week's earlier inflows, although the funds still finished the five-day period with positive net flows.
Coinpaper previously reported the initial $635.6 million ETF withdrawal, which coincided with broader pressure on cryptocurrency markets.
However, ETF flows alone cannot establish why Bitcoin fell, particularly as stocks, bond yields and monetary-policy expectations also influence investor positioning.
Federal Reserve Decision Could Determine Bitcoin's Next Move
The Federal Open Market Committee meets October 27–28, with the interest-rate decision scheduled for Wednesday at 2:00 p.m. Eastern Time.
Markets broadly expect policymakers to leave rates unchanged. However, investors remain concerned that persistent inflation could keep borrowing costs elevated or prompt another increase in December.
That distinction matters for Bitcoin because restrictive monetary conditions can support the dollar and Treasury yields while reducing demand for speculative investments.
Earlier Coinpaper Fed coverage warned that even a decision to hold rates steady might not guarantee a cryptocurrency recovery.
Meanwhile, QCP Capital previously identified $80,000–$82,000 as a potential Bitcoin buying zone, making the latest breakdown an important test of that investment thesis.
Bitcoin Price Prediction: Will BTC Fall Toward $75,000?
Bitcoin's immediate technical outlook depends on whether buyers can reclaim $80,000 and establish support above that level.
Failure to recover could bring another test of the recent $79,200 low, followed by possible support around $78,100 and $76,800.
A sustained breakdown below these levels would strengthen the bearish scenario toward $75,000, approximately 6% below the $80,000 threshold.
That deeper target also overlaps with previous Coinbase-related downside analysis, although it remains a conditional scenario rather than a confirmed forecast.
Alternatively, Bitcoin reclaiming $82,000 could encourage another recovery toward $84,000–$85,000, where sellers recently regained control.
Longer-term scenarios remain considerably wider, with earlier year-end Bitcoin forecasts outlining both $75,000 downside risk and potential recovery toward $90,000-$100,000.
