Bitcoin traded near $80,000 on Monday after slipping about 2% earlier in the session. The cryptocurrency has dipped below that threshold several times in recent days, recovering on each occasion, while selling pressure has continued to build.

Spot Bitcoin ETFs recorded roughly $635 million in outflows on October 22. The funds, which hold bitcoin directly, publish daily flow data that market watchers follow as an indicator of institutional demand. A brief drop below $80,000 last week also triggered approximately $800 million in liquidations of long positions, or bets that prices would rise. Liquidations happen automatically when a leveraged position's losses breach an exchange's margin requirements.

Fed Decision in Focus

The next major test is the Federal Reserve's two-day policy meeting, which concludes October 28. The Fed raised its target range to 3.75% to 4% in September, and its minutes suggested another increase could come by year-end. A decision to hold would leave the target range unchanged at that level.

The most recent market odds favor the central bank holding rates steady, though those odds have shifted. Traders are watching remarks from Fed Chair Kevin Warsh for signs of a December hike.

Higher interest rates typically pull money away from risky assets, including crypto. Broadly speaking, a hold could keep the bitcoin price within a range of roughly $80,000 to $88,000, while a rate hike could push it toward the lower end of that band.

Bitcoin Price Backdrop

Geopolitical tensions are also weighing on markets. Oil rose above $100 a barrel in early September as strikes between the U.S. and Iran escalated. Higher energy prices feed into inflation, which in turn affects the Fed's decisions.

In tech, Anthropic is reportedly preparing an initial public offering that could value the AI company near $965 billion. The timing has shifted toward the weeks before the November midterm elections, though no date has been confirmed.

U.S. stocks rose modestly Monday as investors geared up for a busy week of Big Tech earnings and the Federal Reserve's interest-rate decision. The Nasdaq gained 0.8%, the S&P 500 advanced 0.6%, and the Dow climbed 0.3%. Alphabet and Microsoft report Wednesday, followed by Amazon on Thursday, while markets largely expect the Fed to hold rates steady. With rate policy and heavyweight earnings clustered in the same week, traders have several near-term reference points for risk appetite across markets.

AI-related stocks rallied following Anthropic's IPO filing. Tesla jumped 6%, while Meta plans to raise up to $95 billion for AI investments.

Recent Price Action

As of writing, bitcoin trades at $80,215, down nearly $4,000, or 4.75%, on the month. Over the past month, prices have ranged from a high of $86,806.95 to a low of $79,397.76. Bitcoin peaked above $86,000 in early October, then slid toward $80,000 in the second week of the month.

A brief rally around October 21 pushed the price back near $84,000, but those gains faded within days. Trading volume over the past 24 hours reached about $18.12 billion.

Bitcoin remains far below its all-time high of $126,277.05 — roughly 36% beneath that peak.

This article first appeared on Bitcoin Magazine and was written by Micah Zimmerman.