Bitcoin has slipped below USD 80,000 on Monday, October 26, as investors reduced exposure to cryptocurrencies ahead of the Federal Reserve meeting and major technology earnings. Farside Investors recorded about USD 773.5 million in net withdrawals from US spot Bitcoin exchange-traded funds during the previous two trading sessions.
The cryptocurrency fell as much as 1.4% to below USD 79,300 before recovering toward USD 80,000. Ether, XRP, and Solana also declined. The drop followed pressure on technology shares as investors questioned heavy spending on artificial intelligence.
Bitcoin ETF Outflows Reach USD 773 Million in Two Sessions
US spot Bitcoin ETFs lost USD 635.6 million on October 22 and another USD 137.9 million on October 23, according to Farside Investors. The withdrawals followed three straight sessions of inflows totaling about USD 1.07 billion.
BlackRock's IBIT accounted for USD 254.1 million in outflows on October 22, while Fidelity's FBTC lost USD 217.5 million. However, inflows from October 19 through October 21 exceeded the subsequent withdrawals, leaving the five-day period with a net gain of about USD 301 million.
The reversal followed Bitcoin's failed move toward USD 85,000 last week. Despite the withdrawals, Farside's records showed cumulative net inflows of approximately USD 57.25 billion into the covered US spot Bitcoin ETFs through October 23.
Federal Reserve Meeting and PCE Inflation Data Approach
The Federal Reserve will meet on October 27 and 28, with its interest-rate decision scheduled for Wednesday. Investors will focus on comments from Chair Kevin Warsh about inflation and the outlook for borrowing costs.
“While the Fed probably won’t change rates this week, we’re watching how strongly the chair hints at a December hike,” said Jeff Mei, chief operating officer of crypto exchange BTSE. Higher interest rates can reduce demand for risk assets, including cryptocurrencies.
Meanwhile, the US Bureau of Economic Analysis will publish September personal consumption expenditures inflation figures on October 29. Its previous report showed that the PCE price index increased 0.3% in August and 3.4% from a year before.
AI Earnings Add Another Test for Risk Assets
Technology earnings are another focus after concerns about heavy AI investment contributed to recent stock market losses. Microsoft plans to publish quarterly results on October 28, while Amazon will report on October 29.
Investors will examine spending on data centers and other AI infrastructure alongside revenue growth. Meanwhile, some Asian technology stocks fell on Monday, and Nasdaq 100 futures edged lower as markets prepared for the results.
Caroline Mauron, co-founder of Orbit Markets, said, “The market focus is now on the Fed meeting, followed by US midterm elections.” The upcoming reports come as investors reassess their exposure to technology stocks and cryptocurrencies.
Bitcoin Price Faces Resistance Near USD 83,146
Bitcoin traded near USD 79,888, below its seven-day simple moving average of USD 81,715 and 30-day average of USD 83,035. Its MACD histogram reading of -347.05 indicated that recent price momentum remained bearish.
The USD 83,146 Fibonacci retracement level represents a nearby resistance area. On the downside, traders are watching USD 78,200 and USD 77,700 after Bitcoin lost the USD 80,000 threshold. The levels remain central to the Bitcoin price outlook ahead of the Fed decision.
In addition, Bitcoin treasury company Strategy is scheduled to report third-quarter results on October 29. The company has confirmed that it will discuss its financial results in a live webinar at 5 p.m. Eastern Time that day.
Also Read: Crypto Prices Today: Bitcoin Trades Near USD 80,100 as Fed Meeting Approaches