Bitcoin Falls Below $80k Ahead of Federal Reserve Rate Decision
Bitcoin (BTC) price dropped below $80k, settling at $ 79,800 on Monday and underperforming a slightly weaker broader market, driven mainly by a spike in leveraged long liquidations.
It shows a moderate correlation with the S&P 500 (18%), indicating a shared macro-driven move. Reflecting the price move, Bitcoin liquidations jumped 264% to $51.24 million over 24 hours, with long liquidations totalling $33.34 million, far exceeding shorts, and forcing the sell-off.
This deleveraging often creates cascading downward pressure as positions are closed. The market is rapidly shedding speculative risk, amplifying a modest decline. A drop in total open interest, which rose 5.66% to $353.26B, signals that leverage remains elevated.
The total crypto market cap fell 0.66%, with Bitcoin moving in lockstep. Analysts cited investor caution ahead of the Fed meeting and major tech earnings, with concerns that AI spending could draw capital from crypto.
Bitcoin’s drop is part of a wider pullback in risk assets, not a coin-specific failure. The immediate trigger is the Federal Reserve’s October 28 policy decision.
While a pause is widely expected in October, market participants and economists increasingly see a December 2026 rate hike as likely because of persistent core inflation and low unemployment.
Key technical support is at $78,000, with resistance at the 50-day average near $80,787. If ETF outflows persist and BTC breaks $78,000, it will likely test $75,000. A hawkish Fed could extend the sell-off, while steady inflows could support a rebound.
The short-term trend is bearish, hinging on macro cues and willot demand. U.S. spot Bitcoin ETF flow data post-Fed meeting to gauge institutional conviction.
Long-term jitters have pushed Bitcoin below key levels. While long-term fundamentals remain, the near-term path depends on holding support. XRP Rises as Investors in Korean Markets Bet on Altcoins
