Bitcoin slips under $80,000 as ETF outflows and Fed jitters weigh on risk assets

Key points

• US spot Bitcoin ETFs lost $636m on 22 October and $138m on 23 October, according to SoSoValue, leaving them down about $314m for October.
• Analysts point to the Federal Reserve's decision on Wednesday and the US midterm elections on 3 November as sources of further volatility.

Bitcoin dipped below $80,000 over the past day as a technology stock sell-off and nerves before the Federal Reserve's rate decision hit risk assets, Decrypt reports.

US spot Bitcoin ETFs recorded $636m in net outflows on 22 October, erasing most of a three-day run of inflows, then a further $138m on Friday, SoSoValue data show. The funds still ended the week up about $301m, ending a two-week losing streak, but remain down about $314m for October.

Tim Sun, senior researcher at HashKey, attributed the fall mainly to a wider correction in global risk assets, with doubts about the valuations of AI-related technology stocks a major factor. He said ETF outflows and the unwinding of leveraged positions added to the pressure. Daniela Hathorn of Capital.com cited persistent inflation, high Treasury yields and expectations of further Fed tightening.

Stephen Wundke of Algoz said $80,000 matters psychologically, though a weekend break could mislead on thin volumes. He flagged falling trading volumes as money moves from altcoins into stablecoins, and said Bitcoin needs to hold $82,000 to support the bull case. Sun sees $75,000 as a key support if the decline continues.

What to watch: The Federal Reserve's rate decision is due on 28 October, with the US midterm elections on 3 November.

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