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Bitcoin Drops Below $80K Despite Fed Leaving Rates Unchanged
- Bitcoin fell to US$79,735, down 1.6% over 24 hours, while Ethereum dropped 2.4% to US$2,302 amid broader crypto market weakness.
- Bitcoin’s recovery above US$81,000 faded after the Federal Reserve held rates steady, with two policymakers favouring an immediate increase.
- Crypto liquidations reached US$395.92 million over 24 hours, including US$52.04 million in Bitcoin long positions.
- US spot Bitcoin ETFs attracted US$423.6 million in weekly inflows, but Glassnode warned that Bitcoin could face further downside towards US$78,000–79,000.
Bitcoin (BTC) just dropped to US$79,735 (AU$113,064), down 3.5% on the weekly and 1.6% on the daily timeframe. Ethereum (ETH) also dropped to US$2,302 (AU$3,264), a 5.4% dip on the weekly and 2.4% on the daily chart.
In total, the crypto market cap is down by 1.38% in the past 24 hours with a US$2.67 trillion (AU$3.78 trillion) market cap. The CoinMarketCap Fear & Greed index is still holding at Neutral.
Bitcoin initially recovered above US$81K (AU$114.8K) following the Federal Reserve’s decision to leave interest rates unchanged.
However, the recovery was short-lived as investors weighed the possibility of further rate increases, with two Fed policymakers voting for an immediate hike. Following the Fed announcement, the US 10-year Treasury yield climbed to approximately 5.03%.
Data from CoinGlass shows that US$395.92 million (AU$560.4 million) in positions were liquidated over the past 24 hours, with US$52.04 million (AU$73.4 million) in Bitcoin long liquidations alone.
On a positive note, the US spot Bitcoin ETFs have seen net positive inflows all week. After Thursday and Friday’s heavy outflows last week, US$423.6 million (AU$600.6 million) entered the funds. Of that, BlackRock’s IBIT alone saw US$397.8 million (AU$564.1 million) in net inflows, while Fidelity’s FBTC saw US$24.5 million (AU$34.7 million) and Bitwise’s BITB US$1.3 million (AU$1.8 million).
Related: VanEck Launches Diversified ETF With Bitcoin Allocation of Up to 5%
Potential for Further Downside
However, Glassnode’s latest research suggests Bitcoin could face further pressure. In its 28 October report, the analytics firm found that buy orders on Binance had shifted towards the US$78K–79K (AU$110.6K–112K) range, where around US$42 million (AU$59.5 million) in bids had accumulated.
Glassnode also estimated that the average price US spot Bitcoin ETFs paid for their Bitcoin was around US$81.5K (AU$115.5K), leaving the funds’ Bitcoin holdings below their estimated cost basis at current prices.
Read also: US Treasury Secretary Puts Crypto Alongside AI and Chips in Competition With China
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Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
