Bitcoin rebounded to approximately $80,800 on Sunday following a significant selloff over the weekend, as investors evaluated substantial cryptocurrency liquidations in anticipation of the Federal Reserve’s forthcoming interest rate decision. The Federal Reserve’s meeting on October 27-28 is anticipated to significantly influence Bitcoin prices, as traders closely monitor for indications regarding the potential maintenance of interest rates or the likelihood of additional tightening measures. Elevated interest rates may exert downward pressure on Bitcoin by bolstering the dollar and diminishing the appetite for riskier assets, whereas a more dovish perspective could facilitate a rebound.
Elevated oil prices have complicated the outlook, with Brent crude trading above $117 amid the Iran war, raising concerns about persistent inflation. Bitcoin declined to a low of $79,146 on Saturday, marking its weakest point in over a month, before recovering to surpass the psychologically significant $80,000 level. Over a 24-hour period, liquidations in cryptocurrency positions exceeded $810 million, with around $689 million attributed to bullish bets, as reported by data. Thin weekend liquidity exacerbated selling pressure as leveraged positions were forcibly liquidated after Bitcoin fell below $80,000.
Bitcoin was trading at $80,936.3 as of 00:53, approaching the $81,000 mark. Bitcoin has also fallen below its 50-day moving average, which is situated near $81,700. Traders are now observing potential support levels at approximately $78,400 and $77,876. Meanwhile, corporate Bitcoin treasury companies encounter increasing difficulties in reconciling cryptocurrency acquisitions with their financing commitments. Fidelity Digital Assets reports that perpetual preferred stock offerings have facilitated the acquisition of around 136,000 Bitcoin since 2025.
Companies including Strategy and Strive have increasingly relied on preferred shares to raise capital, although recurring dividend payments could constrain future purchases. Strategy recently allocated $193 million toward the repurchase of preferred shares, concurrently acquiring only 267 Bitcoin, underscoring the conflicting pressures on its capital resources. In a separate statement, Xapo Bank CEO Seamus Rocca noted that affluent Bitcoin investors are progressively opting to borrow against their assets and pursue yield opportunities instead of liquidating their cryptocurrency holdings.
