Bitcoin traded near $80,215 on Monday as traders positioned ahead of the Federal Reserve’s two-day meeting ending October 28, with liquidations, ETF outflows, and geopolitical tension creating headwinds for the asset.
The price decline of 2% earlier in the session triggered approximately $800 million in long position liquidations after Bitcoin slipped below $80,000 last week. Spot Bitcoin ETFs recorded $635 million in outflows on October 22, signaling sustained selling pressure. Bitcoin has declined $4,000, or 4.75%, over the month, trading between a high of $86,806.95 and a low of $79,397.76.
The Federal Reserve raised its target range to 3.75% to 4% in September, with meeting minutes suggesting another increase could come by year-end. Market odds currently favor the Fed holding rates steady at this week’s decision, though positioning has shifted. A hold could keep Bitcoin between $80,000 and $88,000; a rate hike would likely push the asset toward the lower end of that range. Higher interest rates typically redirect capital from riskier assets, including cryptocurrency.
U.S. stocks surged Monday as investors prepared for Big Tech earnings reports and the Fed decision. The Nasdaq gained 0.8%, the S&P 500 rose 0.6%, and the Dow added 0.3%. Alphabet and Microsoft are scheduled to report Wednesday; Amazon reports Thursday. Tesla stock jumped 6% following the broader market rally.
Geopolitical tensions are weighing on markets. Oil rose above $100 a barrel in early September as U.S.-Iran strikes escalated. Higher energy prices feed into inflation, a key factor in Federal Reserve policy decisions.
AI-related stocks rallied Monday following news that Anthropic is preparing an IPO valued near $965 billion. Meta is planning to raise up to $95 billion for AI investments, adding to momentum in the sector.
Bitcoin traded at $80,215 with $18.12 billion in volume over the past 24 hours. The asset remains well below its all-time high of $126,277.05 and its early-October peak above $86,000.
