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26.10.2026 11:56 AM
Bitcoin on sidelines ahead of Fed move

S&P 500 futures are sitting idle, Europe's Stoxx 600 is flat, and traders briefly exhaled after two weeks of sharp losses as they await tech earnings for clues on the AI trade. Calm skipped the crypto market: Bitcoin slid below $80,000, losing its grip on broader risk appetite ahead of the Fed meeting and US midterms.

After a sharp retreat on October 22, when Bitcoin fell below $81,000 amid a spike in oil prices tied to Middle East tensions and tech mega-cap selling drove the Nasdaq 100 to multiday lows, the market got a short breathing room. That earlier sell-off looked more like risk redistribution from equities into crypto rather than a standalone crypto shock. US spot Bitcoin ETFs saw inflows of about $1.1 billion, offsetting roughly $909.6 million of outflows in the prior two weeks. But that support was reversed by a fresh $772.4 million outflow by week-end, wiping out nearly all the positive momentum. Capital flows are swinging like a weathervane in high winds — Ether, XRP, and Solana fell alongside the No.1 token.

Bitcoin and moving average dynamic

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A move back to $81,000 puts BTC/USD at the 50-day moving average, a key near?term ceiling. The price is clinging to that line like a tightrope walker to a safety net, a reminder that bulls have not yet secured an easy victory.

Pressure on the largest crypto continues to come from concerns about the debt load tied to the AI investment cycle, which is weighing on all risk assets indiscriminately. Bitcoin remains a risk-asset exposure for systematic funds and algorithmic traders, making it vulnerable to sudden shifts in sentiment. Rising cyber security threats — an unwelcome byproduct of AI advances — also add to investor nervousness around digital assets.

Bitcoin's resilience relative to other risky assets is still a relative positive, but market focus has shifted toward the Fed meeting and US midterms, events that are likely to determine investor appetite in the weeks ahead.

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In short, Bitcoin is balancing between fresh ETF outflows and the memory of recent institutional demand. The Fed's decision and early signals from the midterms will decide which force dominates.

Technically, the daily BTC/USD chart shows a bearish attempt to retrace the inside bar. A drop back to $79,700 would increase the risk of a deeper pullback and offer an entry point for short positions. Conversely, a sustained rally to $81,000 would be a valid trigger for buyers.

Marek Petkovich,
Analytical expert of InstaForex
© 2007-2026
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