Bitcoin traded around $80,000 on Monday, after having fallen by about 2% at one point during the session. In recent days, the price has fallen below this level several times, but it has managed to rebound each time.
The selling pressure is increasing. Spot Bitcoin ETF recorded an outflow of approximately $635 million on October 22. Last week, Bitcoin briefly fell below $80,000, which also triggered the liquidation of long positions worth about $800 million, meaning that positions betting on a price increase were closed out.
The next major test to watch is the two-day meeting of the Federal Reserve, which will conclude on October 28th. In September, the Fed raised its target interest rate range to 3.75% to 4%. Meeting minutes indicate that there may be another interest rate hike before the end of this year.
The latest market probabilities indicate that traders are more inclined for the Federal Reserve to keep interest rates unchanged, but this expectation has changed somewhat. Traders are paying attention to the remarks of Federal Reserve Chairman Kevin Warsh in search of signals for a rate hike in December.
Higher interest rates typically draw funds away from risky assets, including cryptocurrencies. Overall, if interest rates remain unchanged, the price of Bitcoin is likely to fluctuate between around $80,000 and $88,000; if interest rates rise, the price may move closer to the lower end of this range.
Geopolitical tensions are also weighing on the market. At the beginning of September, as conflicts between the United States and Iran escalated, oil prices briefly exceeded $100 per barrel. Higher energy costs will drive up inflation, which in turn will affect the decisions of the Federal Reserve.
In the tech sector, it is reported that Anthropic is preparing for its initial public offering (IPO), with a valuation estimated to be close to $965 billion. The listing date has been postponed to a few weeks before the mid-term elections in November, but the exact date has not yet been confirmed.
On Monday, the U.S. stock market saw a slight increase as investors prepared for a busy week ahead, which will see the release of financial reports from major tech companies and the Federal Reserve's interest rate decisions. The Nasdaq index rose by 0.8%, the S&P 500 index by 0.6%, and the Dow Jones Industrial Average by 0.3%.
Alphabet and Microsoft will release their financial reports on Wednesday, while Amazon will do so on Thursday. The market generally expects the Federal Reserve to keep interest rates unchanged.
Driven by the application news of Anthropic IPO, stocks related to artificial intelligence have risen. Tesla has increased by 6%, while Meta plans to raise up to $95 billion for investments in artificial intelligence.
As of press time, Bitcoin is trading at $80,215, a decrease of nearly $4,000 from the beginning of the month, representing a decline of about 4.75%. Over the past month, the price has fluctuated between a high of $86,806.95 and a low of $79,397.76. In early October, Bitcoin briefly surpassed $86,000 before falling back to around $80,000 in the second week of the same month.
A brief rebound around October 21st pushed prices back near $84,000, but these gains disappeared within a few days. The trading volume in the past 24 hours was approximately $18.12 billion.
Currently, Bitcoin is still far below its historical high of $126,277.05.
