Bitcoin slips below $80,000 as cryptocurrencies weaken ahead of Fed decision

Bitcoin declined on Tuesday, October 27, slipping below the $80,000 threshold as investors reduced their exposure to cryptocurrencies ahead of the Federal Reserve's monetary policy decision.

The broader digital asset market remained under pressure despite gains in US technology stocks, with expectations of persistently high interest rates limiting demand for riskier investments.

Price overview

Bitcoin traded around $79,800, down approximately 0.8% in intraday trading.

Ethereum hovered near $2,310, extending its recent losses.

Solana traded around $100, struggling to sustain a recovery above that threshold, while XRP remained near $1.29.

Federal Reserve uncertainty weighs on Bitcoin

Investors are preparing for the conclusion of the Federal Reserve's October 27–28 meeting, with policymakers widely expected to leave interest rates unchanged.

Attention has shifted toward Chairman Kevin Warsh's comments on inflation and the possibility of another rate increase in December.

Higher borrowing costs generally reduce demand for speculative assets, particularly cryptocurrencies, which remain sensitive to changes in market liquidity.

Bitcoin has struggled to regain momentum since falling below $85,000 earlier this month.

Altcoins remain under pressure

Ethereum continued to trade near $2,300, while Solana hovered around $100, reflecting persistent weakness across major alternative cryptocurrencies.

The divergence between rising technology shares and subdued cryptocurrency prices suggests that investors remain selective in their exposure to risk.

Market outlook

Bitcoin faces immediate resistance around $80,800, followed by $82,000, while support remains near $79,400.

A sustained decline below that level could increase selling pressure and bring $78,000 into focus.

The Federal Reserve's policy announcement on Wednesday could determine whether cryptocurrencies recover from their recent losses or extend their downward trend.