Bitcoin dropped below $80,000 on Monday, October 26, marking its lowest level in over a month after a weekend selloff. Rising oil prices, inflation concerns, and uncertainty ahead of the US Federal Reserve’s policy decision weighed on sentiment across digital assets. Bitcoin was trading around $79,600, $80,400, while Ethereum hovered between $2,300 and $2,327. Other major cryptocurrencies like BNB, XRP, and Solana also faced pressure, with nine of the top 10 cryptocurrencies by market cap declining.
The decline reflects broader caution in financial markets, with Brent crude reaching an eight-month high of $116 and the 10-year US Treasury yield hitting 5%. Vikas Gupta of Bybit noted that concerns over AI sector valuations and rising oil prices were impacting global risk assets. Leveraged liquidations could further amplify short-term volatility in crypto markets, according to Gupta. Nischal Shetty of WazirX pointed to rising energy prices and higher Japanese bond yields as factors keeping inflation elevated and restricting capital flows into Bitcoin and altcoins.
Key support levels for Bitcoin were identified around $79,000, $80,000, with immediate support near $78,500, $79,000. Resistance was seen near $81,700, where Bitcoin’s 50-day moving average stood. Harish Vatnani of ZebPay noted that Bitcoin had lost support after retreating from its earlier rally towards $87,000, indicating bearish momentum in the short term. Vikram Subburaj of Giottus.com identified immediate resistance around $81,400, $81,700, with support near $80,100, $80,200.
Institutional demand for Bitcoin ETFs has been uneven, with periods of strong buying followed by significant outflows. US spot Bitcoin ETFs recorded inflows of $526.7 million on October 19 and $524.8 million on October 21, but saw $635.6 million in net outflows on October 22. Despite this, net inflows of over $300 million were recorded over the week, suggesting persistent institutional interest. The Federal Reserve’s October 27-28 meeting and an $11 billion Bitcoin options expiry on Friday are key events that could influence near-term volatility.