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Bitcoin has fallen 1.50% to USD 79,810.94 over the past 24 hours, dropping below USD 80,000 as technology stocks weakened and traders assessed the Federal Reserve’s latest interest rate decision.
The Federal Reserve kept its benchmark interest rate at 3.75% to 4% on Wednesday, October 28, following a two-day policy meeting. However, the central bank made clear that its concerns about inflation have not eased. In its policy statement, officials said, “Inflation remains elevated.”
The decision passed by a 10-2 vote, with two officials favoring a quarter-point increase. Fed Chair Kevin Warsh also said inflation remained above the central bank’s 2% target. Higher interest rates can make bonds more attractive and reduce demand for riskier assets, including Bitcoin. BlackRock executive Rick Rieder advised investors against making a “heroic directional call” on interest rates.
Meanwhile, oil prices added another concern for investors. Brent crude traded above USD 115 a barrel on Wednesday before easing toward USD 114 on Thursday, amid renewed tensions in the Middle East. Elevated energy costs can put further pressure on consumer prices as markets await fresh U.S. inflation figures.
Selling accelerated during Thursday’s Asian session after Samsung Electronics shares dropped by around 5%.
The company reported a record quarterly operating profit of 107.4 trillion won, including 106.5 trillion won from its semiconductor division. Nevertheless, the chip division’s result fell short of one closely watched analyst estimate.
Samsung also projected annual capital spending of 84.4 trillion won as it expanded investment in semiconductor production. The company expects demand for chips used in artificial intelligence systems to remain strong.
South Korea’s Kospi index lost more than 2%, while Nasdaq futures declined around 1.4% during the sell-off. Bitcoin reversed a recovery that had taken its price above USD 81,700. Ether, XRP and Solana also retreated as weakness spread across digital assets. The wider cryptocurrency market fell about 1.57% over 24 hours.
The move triggered forced closures of leveraged futures positions. Market figures showed about USD 356 million in crypto futures liquidations over 24 hours, including roughly USD 205 million in positions betting on higher prices. Bitcoin accounted for about USD 94 million, while Ether recorded approximately USD 72 million. Such closures can add selling pressure when prices fall quickly.
Despite the decline, U.S. spot Bitcoin exchange-traded funds recorded net inflows of USD 137.3 million on Wednesday. Farside Investors reported that BlackRock’s IBIT attracted USD 136 million, while Bitwise’s BITB took in USD 1.3 million. The figures marked a third straight day of inflows, bringing the three-session total to approximately USD 424 million.
The recovery followed combined withdrawals of about USD 774 million on October 22 and 23. According to the latest fund-flow figures, October has now returned to a modest net inflow of roughly USD 110 million. Meanwhile, spot Ethereum ETFs recorded another USD 21 million in withdrawals on Wednesday, bringing their October outflows to approximately USD 1.35 billion.
Attention now turns to the September personal consumption expenditures inflation report, scheduled for Thursday at 8:30 a.m. Eastern Time. Traders are also monitoring the USD 80,000 price level following Bitcoin’s decline below it.
A move back above USD 80,000 could put the USD 82,500 resistance area in focus, while continued selling could bring the USD 76,000 region into view. The inflation figures may also change expectations for the Fed’s next rate decision.
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