Bitcoin Holds Near $80,400 After Weekend Selloff Amid Fed Decision Fears
Bitcoin was hovering around $80,400 on Sunday, calming down after a sharp decline over the weekend. Traders are now liquidating crypto en masse while awaiting the Federal Reserve's upcoming interest rate call.
The price of Bitcoin is expected to rise sharply after the Fed's October 27-28 meeting. Market participants are looking for clues as to whether the central bank will keep rates steady or tighten further.
If rates remain high, a stronger dollar could squeeze Bitcoin by pulling money away from riskier assets. However, the soft stance could give a boost to the digital currency.
Rising oil prices bring another twist. Brent crude is trading above $117 a barrel as the Iran conflict drags on, raising inflation concerns.
Bitcoin touched a low of $79,146 on Saturday – its weakest point in more than a month – before climbing above the psychologically important $80,000 mark. As of 10:31ET (14:31GMT) on Sunday, it stood at $80,352.
The cryptocurrency is on track for its fourth consecutive daily loss and first monthly decline since June.
According to CoinGlass data, more than $810 million in crypto positions were liquidated in the last 24 hours, including nearly $689 million of bullish bets.
The selloff intensified over the weekend due to low liquidity as leveraged traders were forced to exit when Bitcoin slipped below $80,000.
Bitcoin also fell below its 50-day moving average near $81,700. Traders are watching potential support levels around $78,400 and $77,876.
Corporate Bitcoin treasuries are feeling the pressure, trying to balance crypto purchases with regular fiat needs.
Fidelity Digital Assets says its perpetual preferred-stock offerings have funded the purchase of approximately 136,000BTC through 2025.
Companies like Strategy& (NASDAQ) and Strive (NASDAQ) rely on preferred shares to raise cash, but ongoing dividend payments may limit future Bitcoin purchases.
The strategy recently spent $193 million buying back preferred shares while adding only 267BTC, underscoring the tug-of-war on capital.
Separately, Zapp Bank CEO Seamus Rocca said wealthy Bitcoin holders are borrowing against their coins rather than selling outright and are looking for yield. He said institutional allocations could keep demand alive, although regulatory and geopolitical risks remain.
In a security update, hardware-wallet maker Keystone disclosed a breach that exposed customers' names, contact information, shipping addresses and purchase details. The private key, recovery phrase and payment data were safe, but the firm warned users about potential phishing scams offering fake refunds or replacement devices.
Crypto prices today: altcoins mostly mixed
Altcoin movement remained mixed on Sunday.
- Ethereum slipped 0.49% to $2,331.61.
- XRP rose 1.54% to $1.2930.
- Solana rose 0.34% to $100.721.
- BNB jumped 1.49% to $737.80.
- Cardano rose 0.85% to $0.2032.
- Dogecoin gained 0.57%.
- Trump token rose 1.12%.
- The Shiba Inu stood still.
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Key Tips for Bitcoin Traders
- Bitcoin remains above $80,400 as the market awaits the Fed's rate decision.
- Heavy liquidations ($810 million) indicate fragile short-term sentiment.
- Higher oil prices maintain inflation concerns, adding pressure on risk assets.
- Corporates face capital constraints from dividend obligations when purchasing Bitcoin.
- Security breach alerts remind holders to be alert to phishing scams.