Bitcoin Below $80,000 as Traders Await U.S. Economic Data, Fed Rate Decision

By Joseph Wilkins

Bitcoin remained below $80,000 on Tuesday as cryptocurrency traders eye several potential catalysts, including U.S. inflation and GDP data, as well as the Federal Reserve's interest-rate decision.

The flagship cryptocurrency was 0.4% lower at $79,652, slipping from above the $80,000 threshold during the session as the risk-off mood among traders persisted. Anthropic's IPO paperwork helped lift AI-linked stocks following Friday's down session and boosted the Nasdaq composite, but bitcoin was largely excluded from the bounce in equities.

"There is plenty of potential for surprises and volatility, but a solid U.S. GDP reading and good tech results are likely to provide the foundation for a risk recovery," IG's Chris Beauchamp said. "The past month's churn in stocks is more rotation than anything else, and a recovery in tech names should see cryptocurrencies boosted as well."

Market participants are looking ahead to a host of price-driving events this week. The Federal Reserve's interest-rate decision comes Wednesday, with the CME FedWatch tool suggesting a likelihood of just under 90% that policymakers will hold interest rates steady. Traders will be watching for any hawkish clues in Fed chair Kevin Warsh's speech.

"With a Fed rate hold largely priced in and nearly $11 billion in Bitcoin options approaching expiry, markets face a test of policy expectations, spot demand and derivatives positioning," said Bitget Wallet Research, a crypto exchange. Hawkish Fed signals could reinforce expectations of higher yields and a stronger dollar, while softer guidance could offer a tailwind for bitcoin, the analysts added.

Investors will also be monitoring the personal consumption expenditures index--the Fed's preferred inflation gauge--released on Thursday.

Ether was down 0.6% at $2,307.

Write to Joseph Wilkins at joseph.wilkins@wsj.com

(END) Dow Jones Newswires

October 27, 2026 03:19 ET (07:19 GMT)