Bitcoin Stabilizes Above $80,000 After Weekend Selloff; Fed Rate Decision Looms

Bitcoin steadied near $80,400 on Sunday, recovering from a more than one-month low as the cryptocurrency market absorbed a wave of liquidations. Investors are now bracing for the Federal Reserve's upcoming interest rate decision, which is widely expected to set the near-term tone for digital assets and other risk markets.

Weekend Volatility Triggers Mass Liquidations

The leading cryptocurrency fell as low as $79,146 on Saturday before reclaiming the psychologically important $80,000 threshold. The selloff, which puts Bitcoin on track for its first monthly decline since June, was amplified by thin weekend liquidity.

Data from Coinglass showed the extent of the deleveraging event:

• Over $810 million in cryptocurrency positions were liquidated across the market in a 24-hour period.
• Approximately $689 million of those liquidations were bullish long positions, indicating forced selling as prices fell.

Technically, Bitcoin slipped below its 50-day moving average, a key trend indicator for traders. The price action highlights the market's sensitivity to leveraged positions, particularly during periods of low trading volume.

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Fed Meeting and Macro Headwinds in Focus

The Federal Reserve's meeting on October 27-28 is the next major catalyst for the market. Traders are watching for any signals from policymakers about the future path of interest rates. A hawkish stance aimed at fighting inflation could strengthen the U.S. dollar and reduce appetite for risk assets like Bitcoin.

Complicating the central bank's decision are persistent inflationary pressures, underscored by Brent crude oil trading above $117 a barrel, according to the source. A less aggressive monetary policy outlook, however, could provide support for a broader crypto market recovery.

Broader Market and Industry News

Performance among other major cryptocurrencies was mixed. Ether, the second-largest digital asset, dipped slightly to $2,331.61, while XRP rose 1.54% to $1.2930. Elsewhere, hardware wallet manufacturer Keystone disclosed a customer data breach affecting shipping and contact information, though it stated that user funds and private keys were not compromised.