Bitcoin Slips Below $80,000 as MicroStrategy Pauses Purchases, Fed Caution Mounts

Bitcoin (BTC) fell below the key psychological level of $80,000 on Tuesday, breaking out of a trading range it had maintained for the past month. The decline is being attributed to a pause in purchases by major corporate holder MicroStrategy and widespread investor caution ahead of this week's U.S. Federal Reserve policy meeting.

As of 01:43 ET, Bitcoin was trading down 0.5% at $79,830.3, according to data from Investing.com. The move marks a break below the $80,000 to $87,000 range established over the last four weeks.

MicroStrategy Halts Bitcoin Accumulation

MicroStrategy (NASDAQ:MSTR) reported that it made no bitcoin purchases or sales during the week of October 19 to 25, 2026. The pause from one of the largest corporate buyers of the asset sent a negative signal to the market, especially after the company had sold some of its holdings earlier in the year.

Instead of acquiring more bitcoin, the company used $204.9 million in cash to repurchase its own preferred stock during the period. As of October 25, MicroStrategy's holdings remain at 848,517 bitcoin, acquired for a total of $64.02 billion at an average price of approximately $75,446 per coin.

Fed Jitters Weigh on Risk Assets

Broader sentiment for speculative assets has turned cautious ahead of the Federal Reserve's interest rate decision on Wednesday. While the central bank is widely expected to hold its benchmark rate at 4.0%, recent data showing persistent inflation has led to expectations of hawkish forward guidance.

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A hawkish tone from the Fed, suggesting rates may stay higher for longer, typically dampens investor appetite for risk assets like cryptocurrencies. This pressure is compounded by expectations of similarly hawkish stances from the European Central Bank and the Bank of Japan.

Altcoins Follow Bitcoin Lower

The negative sentiment impacted the wider cryptocurrency market, with most major altcoins trading in the red. Key market movements reported by Investing.com include:

• Ether (ETH) fell 0.6% to $2,307.01.
• Solana (SOL) declined by 1.2%.
• BNB dropped by 0.3%.

XRP was a notable outlier, gaining 0.7% following news that its parent company, Ripple, received final U.S. approval to establish a national trust bank.