Bitcoin drops ahead of a massive week

The Roundup is Rhino's weekly read for people who'd rather build a process than predict a price.

Bitcoin slipped back under $80,000 this week after a failed push toward $85,000 the week before. 

Three reasons are keeping it down. 

1. Everyone's bracing for the Fed. 

The Fed decides on interest rates this Wednesday, October 28, and traders are stepping to the sidelines until they see it. The market expectation is that the rate will stay the same. One question that’s making the rounds is whether Fed Chair Kevin Warsh hints at another hike down the road, or if the Fed finally signals that he's done. 

Remember: Bitcoin runs on cheap, plentiful money. Until the Fed says which way it's leaning, nobody wants to make a big bet.

2. The ETF crowd kept selling. 

Spot Bitcoin ETFs bled about $773 million across two sessions this week, according to Farside Investors. The big institutional buyers aren't stepping in to catch the dip; they're trimming ahead of the news, same as everyone else.

3. AI jitters spread to crypto. 

This is a huge week for Big Tech earnings — Microsoft and Amazon both report — and investors are nervous that all the money pouring into AI isn't paying off yet. That anxiety is dragging tech stocks down, and Bitcoin, which is still correlated day-to-day, is getting pulled along for the ride.

None of this means that Bitcoin is breaking, however. 

But it does mean next week will be a week to watch. In the span of two days this week, we get the Fed decision, Big Tech earnings, and a fresh inflation report. That's a lot of market-moving news stacked back-to-back. When that much is coming, the smart money doesn't place big bets the day before — it waits. 

You can’t trade your way through a week like this, but you can own Bitcoin.

Find out how with our in-depth research report about how to buy and hold Real Bitcoin the most affordably and securely. 

Catch you next week,

The Rhino Research Team