FOMC Serves as a Test for Bitcoin

Bitcoin traded around US$80,700 on Wednesday (October 28), marking a gain of approximately 0.6% over the last 24 hours. BTC briefly broke back above US$81,000, buoyed by a rally in technology and semiconductor stocks; however, momentum remained limited as the market awaited the Federal Reserve’s decision.

Positive sentiment emerged from the tech sector, with strong performance from SK Hynix bolstering optimism regarding demand for AI. The rise in tech stocks has reignited interest in risk assets—including cryptocurrencies, which have recently shown a strong correlation with the tech sector.

Nevertheless, Bitcoin continues to face pressure stemming from uncertainty surrounding U.S. monetary policy. The market anticipates that the Fed will hold interest rates steady at its October meeting, shifting the focus toward policy statements and commentary—notably regarding the potential for a rate hike in December.

Fundamentally, the outlook for Bitcoin is gaining support as selling pressure subsides. Galaxy suggests that the bear market phase likely concluded in June, with Bitcoin now entering an accumulation phase; furthermore, BTC has reclaimed a position above its 50-week moving average.

In the altcoin market, Ethereum is trading around US$2,345, Solana near US$102, XRP around US$1.32, and BNB near US$756. Most altcoins have benefited from improved risk sentiment, though the overall market direction remains heavily dependent on the FOMC outcome.

Bitcoin also faces ongoing challenges following a recent dip below the US$80,000 mark. Beyond Fed-related factors, a pause in Bitcoin purchases by MicroStrategy has also tempered market optimism—though the company still held approximately 848,517 BTC as of October 25.

Newsmaker Analysis: For the U.S. session, the US$80,000 level serves as a critical psychological threshold. If Bitcoin manages to hold above that level following the Fed's decision—bolstered by a more dovish policy tone—the chances for a rebound could increase. Conversely, a hawkish signal from Warsh could potentially strengthen the dollar and Treasury yields, thereby putting Bitcoin and other crypto assets back under pressure.

Source: Newsmaker.id