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Bitcoin dropped under $80,000 on October 26, touching an intraday low of $79,332 before recovering to about $80,000, as a technology stock sell-off and nervousness about the Federal Reserve’s midweek rate decision pushed investors away from risk assets, according to Decrypt.
Decrypt put the price at $80,264 in one passage and $80,240 in another, both citing CoinGecko, with Bitcoin down between 2.5% and 2.7% on the week. Crypto.news, citing its own price data, reported BTC near $79,947 on October 26, down 1.02% over 24 hours, with market capitalization around $1.61 trillion and 24-hour trading volume near $17.55 billion. The coin remains roughly 36% below its all-time high of $126,080.
Also read: Bitcoin holds below $82K after 3.2% drop as AI fears hit stocks
Key facts
- Bitcoin hit $79,332 intraday and traded near $80,000, about 36% below its record high of $126,080.
- U.S. spot Bitcoin ETFs lost about $773.5 million over two sessions: $635.6 million on October 22 and $137.9 million on October 23, per Crypto.news citing Farside Investors. Decrypt, citing SoSoValue, gave the same combined figure as more than $773 million and said the funds remain down about $314 million for October.
- CoinGlass data cited by Crypto.news showed $154.23 million in crypto liquidations over 24 hours across more than 62,000 traders, with longs accounting for $117.99 million against $36.23 million in shorts.
- HashKey senior researcher Tim Sun told Decrypt that $75,000 is the next key support to watch if the decline continues.
- The Federal Reserve’s policy decision is due October 28 at 2 p.m. ET, with Chair Kevin Warsh’s press conference at 2:30 p.m. ET, per Crypto.news.
AI stocks and leverage drive the slide
Sun attributed the drop mainly to a wider correction in global risk assets, with doubt about AI-related technology valuations a leading factor. Investors, he said, are not questioning artificial intelligence’s long-term prospects so much as whether today’s prices can be justified by future earnings and cash flow. ETF outflows and the unwinding of leveraged positions, he added, intensified the selling.
Daniela Hathorn of Capital.com told Decrypt that sticky inflation, high Treasury yields and expectations of more Fed tightening have sapped appetite for speculative assets. Stephen Wundke of the quantitative firm Algoz said $80,000 carries psychological weight but that a weekend break below it can mislead because volumes are thin. He said Bitcoin needed to hold the $82,000 level from which it launched rallies in August and September.
Also read: Bitcoin Falls Below $82K as $406M in Longs Get Liquidated
Crypto.news reported a failed push toward $85,000 last week, with Bitcoin briefly approaching that mark on Wednesday before retreating to about $79,100 over the weekend. On-chain analyst Darkfost, cited by Crypto.news, said retail inflows to Binance reached a six-month high, with the 30-day cumulative value of retail deposits rising from about $5.5 billion to $10.75 billion, while whale deposits fell from $5.9 billion in late August to roughly $3.8 billion.
What the two reports agree on
Both outlets tie the decline to ETF withdrawals and stepped-up Fed scrutiny. Decrypt, relying on SoSoValue, noted the funds still ended the week up about $301 million, snapping a two-week losing streak; Crypto.news reported the same weekly gain, describing it as a positive five-day balance. Crypto.news also detailed the October 30 options expiry, estimated at $11 billion, and September PCE inflation data due October 29. Decrypt emphasized the U.S. midterm elections on November 3 as an additional source of uncertainty; Crypto.news did not mention the midterms.
Why it matters
The slide matters most for leveraged traders, who absorbed the bulk of this week’s liquidation losses, and for ETF holders watching institutional demand reverse. It also shows how tightly Bitcoin now trades alongside technology equities and rate expectations, rather than on crypto-specific news. Wundke’s warning about shrinking altcoin volumes and money parked in stablecoins suggests risk appetite is cooling across the market, not just in Bitcoin.
Sun’s $75,000 support level and Crypto.news’ technical read are forecasts, not certainties. Nothing here is financial advice, and crypto markets are volatile and can move sharply in either direction.
What to watch
All eyes are on the Federal Reserve’s rate announcement on October 28. Crypto.news noted that markets expect rates to stay at 3.75%–4.00%, with CME FedWatch placing the odds of a hike near 9%, though December expectations remain elevated. September PCE inflation data on October 29 and the October 30 options expiry are the next tests for price direction.
Reported by decrypt.co.
Sources: Decrypt, Crypto.news