Crypto Market Today, Oct. 26: Bitcoin Slips Below $80,000 as Fed Decision Looms - The Globe and Mail

As of early evening on Oct. 26, the broader cryptocurrency market extended its losing streak amid fading risk appetite. Ethereum fell 0.58% to $2,313.61, and Solana fell 0.94% to $100.30, reflecting the widespread downturn.

Market drivers

The recent selling across crypto markets appears to be driven by two main factors. Traders are reducing their exposure ahead of the Federal Reserve's interest rate decision on Oct. 28, with investors becoming more cautious leading up to major economic announcements.

Second, the crypto market is coming off a strong finish to the third quarter, with several cryptocurrencies posting double-digit rebounds from their summer lows. Some profit-taking after a rally of that magnitude is hardly surprising, particularly as investors weigh the potential impact of the Fed's upcoming decision.

ETF performance

Crypto ETFs experienced a similar wave of selling. The iShares Bitcoin Trust ETF (NASDAQ:IBIT) fell 1.61%, Fidelity Wise Origin Bitcoin Fund (NYSEMKT:FBTC) fell 1.66%, and iShares Ethereum Trust ETF (NASDAQ:ETHA) fell 3.22%.

Investor outlook

Continued weakness in crypto markets heading into Wednesday's Federal Reserve meeting remains a likely possibility as investors take a cautious approach. Although the market is pricing in just an 8% probability of a rate hike, uncertainty surrounding the Fed's decision and subsequent commentary could keep volatility elevated.

For crypto to regain its footing in the near term, investors should watch whether Bitcoin can defend the $80,000 zone and whether major altcoins begin showing signs of renewed strength. Stabilization across these assets could signal improving risk appetite, while further declines would suggest sellers remain in control.