Bitcoin hovers near $80,000 as Fed decision nears October 27

The Federal Open Market Committee approved holding its benchmark interest rate at 3.75%–4.00% on October 28, a decision reached by a 10–2 vote. Lisa Cook and Beth Hammack dissented, advocating for an additional quarter-point hike.

The committee noted that domestic spending remained resilient and capital investment was robust, while inflation stayed elevated. They stated, “The Committee will deliver price stability,” adding that more data would guide their policy stance toward the 2% inflation goal.

This October split followed a unanimous September 16 decision to raise rates by 25 basis points, which brought the benchmark range to its current level.

Market observers noted that while ETF flows can influence demand for the underlying asset, daily figures should not be extrapolated into a lasting trend. Investors must separate flows from derivatives positioning and macro expectations.

The key uncertainty now rests on how the Fed communicates its view on inflation, growth, and future borrowing costs, as markets may react to the gap between expectations and the final decision rather than the headline rate alone.

Before the official release, KPMG’s October 22 preview forecast an unchanged rate and a December hike, though the actual decision introduced two dissenting voices.

Earlier analysis from Rekt Capital suggested Bitcoin needed to reclaim $81,400 as support, with potential upward moves toward $82,000–$82,500.

Why it matters

The Fed's stance on interest rates directly impacts the broader risk appetite that drives digital asset valuations. Readers should monitor the Fed's statement for cues on future policy shifts, as this dictates the cost of capital for crypto markets. The market's reaction will hinge on how the Fed communicates its view on inflation and growth.