Bitcoin Holds Near $81,000 as Fed Rate Risks Rise

| bitcoinmagazine.com
The Federal Reserve held its benchmark interest rate at 3.75% to 4% in a 10-2 vote. Governors Lisa Cook and Beth Hammack dissented, favoring a 0.25 percentage-point increase. The Fed described economic activity as strong and said it would assess incoming data. Markets are watching for the possibility of a December rate hike, with inflation, oil prices and Treasury yields among the factors shaping expectations. Bitcoin briefly climbed to about $81,700 after the decision, then fell below $80,500 before recovering towards $81,000. The move was limited overall, as traders had largely expected rates to remain unchanged. Bitcoin is still below the $81,000-$82,500 resistance range, while $80,000 is a key near-term support level. A break below it could add to selling pressure. Spot Bitcoin ETFs recorded net inflows of $110 million on October 26 and $176 million on October 27, though some large holders reportedly sold into strength. Higher Treasury yields can make non-yielding assets such as Bitcoin less attractive, and leveraged trading may amplify price swings around economic data. Traders are also tracking US jobs and inflation reports ahead of the Fed’s December 8-9 meeting. Separately, the crypto industry reportedly spent about $176 million across more than 100 US midterm races, with Fairshake leading the effort; the election is scheduled for November 3.
Neutral
The immediate price impact on Bitcoin appears neutral. The Fed’s decision to hold rates was widely expected, and Bitcoin’s brief rise followed by a pullback and recovery towards $81,000 suggests traders had largely priced in the announcement. ETF inflows provide some demand support, but reported selling by large holders and the failure to hold above the $81,000-$82,500 resistance zone limit the bullish signal. In the short term, the Fed’s divided vote and the possibility of a December hike could keep Bitcoin volatile. If inflation or employment data strengthens expectations of tighter policy, rising Treasury yields may weigh on Bitcoin, while a break below $80,000 could trigger additional selling, particularly in leveraged positions. Conversely, continued ETF inflows and a sustained move above resistance could improve sentiment. Over the longer term, the direction of inflation, interest rates and liquidity will matter more than this widely anticipated hold. The current information points to competing pressures rather than a clear directional catalyst, supporting a neutral classification.