$110M ETF Inflow Fails to Lift Bitcoin Above $80K Before Fed

At 11:49 UTC on Tuesday, October 27, CoinGecko data showed Bitcoin changing hands at $79,786, marking a 0.58% decline over a 24-hour period. As the cryptocurrency lingers below the $80,000 threshold, market participants are bracing for the Federal Reserve’s rate announcement on Wednesday while questioning the root causes of the downward movement.

Market observers attribute the current dip to headwinds facing technology shares, ongoing interest rate ambiguity, and recent capital outflows from exchange-traded funds. Meanwhile, a return to net inflows on Monday serves as a stabilizing factor as traders await official direction from the central bank.

Bitcoin Stays Below $80,000 as the Fed Meeting Begins

The Federal Reserve’s two-day policy gathering kicked off on Tuesday, with CME FedWatch projections pointing to an approximately 90% probability that interest rates will be left unchanged. Market participants will also scrutinize the proceedings for any hints regarding a potential hike prior to the end of the year.

Read More: How Bitcoin ETF Weekly Flows Kept $301M After Two Days of Outflows

The premier cryptocurrency failed to track gains in Asian technology equities—such as South Korea’s Kospi rising 3.1%—while U.S. stock futures drifted lower in anticipation of upcoming major tech earnings. Earlier, the digital asset dipped to $79,332 before climbing back above $80,000 on Monday.

BTC Traders Watch $75,000 Support and $82,000 Recovery

Tim Sun, a senior researcher at HashKey, blamed the broader market contraction on a general correction across global risk assets, doubts surrounding artificial intelligence valuations, ETF redemptions, and the liquidation of leveraged positions. Pointing to $75,000 as a vital level of downside support, he anticipates that volatility will remain high.

Stephen Wundke, director of strategy and revenue at Algoz, described $80,000 as a psychologically significant benchmark, though he warned that weekend price action can be deceptive when trading activity is thin. He noted that persistent trading beneath $82,000 could pave the way for a more extensive correction amid ongoing macroeconomic turbulence.

ETF Investors Weigh Fresh Demand Against Recent Withdrawals

Data from Farside Investors reveals that U.S. spot Bitcoin exchange-traded funds secured $110 million in Monday inflows, halting a two-day streak of redemptions. SoSoValue tracking previously recorded outflows of $635.5 million on Thursday and $137.9 million on Friday. Despite those withdrawals, the investment vehicles wrapped up the preceding week with roughly $301 million in net inflows, snapping a two-week negative streak.

Even with Monday’s activity, October figures still reflected approximately $314 million in net withdrawals as of Monday’s reporting. Capital.com senior market analyst Daniela Hathorn cautioned that Bitcoin’s rebound could remain precarious unless robust institutional backing coincides with improved market sentiment. Upcoming daily flow data will determine whether Monday’s buying trend persists.

The Fed and Inflation Set Bitcoin’s Next Tests

The October 28 interest rate verdict is slated for release at 2 p.m. Eastern Time. It will be closely followed on October 29 by the release of the September Personal Consumption Expenditures price index, presenting another inflation checkpoint right on the heels of the central bank meeting.

Hathorn cautioned that a hawkish stance from the Fed could bolster the U.S. dollar and heap pressure on risk-on assets. Additionally, upcoming big tech earnings reports could sway Bitcoin’s trajectory via broader investor sentiment. For market participants, immediate focal points include Sun’s downside support line, Wundke’s recovery target, the central bank’s official phrasing, and the upcoming inflation data. For ETF participants, consistent inflows would reinforce the recovery outlook, whereas renewed outflows would place institutional demand under strain.

?FAQ

01What time is the Federal Reserve’s October 28 rate decision scheduled?

The announcement is due at 2 p.m. Eastern Time on Wednesday, October 28. It concludes the two-day meeting that begins October 27.

02When will the September PCE inflation report be released?

The Bureau of Economic Analysis is scheduled to publish it on October 29. The release gives investors a fresh inflation gauge the day after the Fed decision.

03How much did US spot Bitcoin ETFs receive on Monday?

Farside Investors put Monday’s net inflow at $110 million. The positive session followed withdrawals on both Thursday and Friday.

04Which downside support level is HashKey researcher Tim Sun watching?

Sun identified $75,000 if Bitcoin declines further. He paired that level with an expectation of elevated volatility, rather than a forecast that Bitcoin must reach it.

05Why does Algoz’s Stephen Wundke consider $82,000 important?

Wundke said Bitcoin needed to hold $82,000 to support the bullish case while macroeconomic uncertainty continues. He warned that staying below it could see a broader pullback in the coming weeks.

This article is for information only and is not financial advice.