Bitcoin Bobs Back Above $80,000 Ahead of Fed Rate Decision — 2nd Update

By Joseph Wilkins and Dean Seal

Bitcoin continues to seesaw the $80,000 mark, breaking above the level as traders await Wednesday's interest-rate decision from the Federal Reserve.

The flagship cryptocurrency was 0.8% higher at $80,567, reversing an earlier move below the $80,000 threshold where it has been rangebound for days. Anthropic's IPO paperwork helped lift AI-linked stocks following Friday's down session and boosted the Nasdaq composite Monday. Bitcoin eventually caught up to 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 over 90% that policymakers will hold interest rates steady. Traders will be watching for any hawkish clues in Fed Chairman 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.

Commitment from institutional investors, which include pension funds and banks, to bitcoin funding will be determined by Federal Reserve guidance on rate decisions in December, said Edgars Laimite, co-founder of crypto trading company Gravity Team. "Bitcoin is dealing with the uncertainty around equities and oil, alongside the cost of dollar funding," he said. "This week is about how firms plan around those conditions."

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

Ether was up 1.5% at $2,348.

Write to Joseph Wilkins at joseph.wilkins@wsj.com and Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

October 27, 2026 12:53 ET (16:53 GMT)