Bitcoin Falls Below $80,000 as ETF Outflows and Fed Risk Weigh
Bitcoin briefly fell to about $79,330 before recovering to around $80,240, remaining down roughly 2.5% over the week and about 36% below its record high. A sell-off in technology stocks and uncertainty ahead of the Federal Reserve’s rate decision and U.S. midterm elections weighed on risk assets.
U.S. spot Bitcoin ETFs recorded $635.5 million in net outflows on Thursday and another $137.9 million on Friday. Despite the late-week withdrawals, they gained about $301 million for the week, but remained down approximately $314 million for October.
Analysts cited pressure from technology stocks, elevated Treasury yields, inflation concerns and the unwinding of leveraged positions. They identified $80,000 as a key psychological level, $82,000 as important for a stronger bullish outlook, and $75,000 as potential support if Bitcoin falls further. Traders are watching the Fed decision and major technology earnings for signals on Bitcoin’s near-term direction.
Bearish
The near-term signal is bearish: Bitcoin slipped below the psychologically important $80,000 level as technology stocks weakened, ETF investors withdrew more than $773 million over two days, and traders reduced leveraged exposure. The move reflects broader risk aversion rather than a cryptocurrency-specific shock, but that can still amplify selling when liquidity is thin. A more hawkish Federal Reserve decision could support the dollar and Treasury yields, adding pressure to Bitcoin and other speculative assets. Traders are likely to watch whether Bitcoin reclaims $80,000 and then holds near $82,000; failure to do so could make the $75,000 support area more relevant. Similar macro-driven sell-offs have often produced sharp, volatile moves, with ETF flows and derivatives liquidations reinforcing price swings. The outlook is not uniformly negative: ETFs were still up about $301 million for the week, and a less hawkish Fed or stronger institutional demand could aid a recovery. Over the longer term, the article does not establish a change in Bitcoin’s fundamentals, but sustained outflows and prolonged macro uncertainty could delay a recovery and keep volatility elevated.