Bitcoin has dropped below $80,000 amid concerns over potential U.S. interest rate hikes and geopolitical tensions in the Middle East. The decline is exacerbated by a significant outflow of funds from spot exchange-traded funds (ETFs), indicating weakened buying sentiment.
As of 8 a.m. on October 27, Bitcoin was trading at $79,861, down 0.65% from the previous day, according to global cryptocurrency market site CoinMarketCap.
Major altcoins also experienced losses. Ethereum fell 1.28% to $2,309.54, while Ripple (XRP) decreased by 0.75% to $1.28. Solana traded at $100.18, down 0.23%, and BNB was down 0.11% at $740.92.
This downward trend is attributed to uncertainties surrounding U.S. monetary policy and a risk-averse sentiment among investors. The U.S. Federal Reserve is set to announce its interest rate decision on October 28. While the market largely expects rates to remain unchanged, persistent inflationary pressures have raised concerns about potential hikes by the end of the year.
Institutional investors are also pulling back. According to blockchain media outlet Decrypt, approximately $635.6 million left U.S. spot Bitcoin ETFs on October 22, followed by an outflow of about $137.9 million on October 23, totaling around $773.5 million over two days.
Geopolitical tensions in the Middle East are further dampening investor sentiment. Observers suggest that the U.S. and Israel are preparing to resume attacks against Iran following the U.S. midterm elections, heightening the risk of conflict between the U.S. and Iran and prompting a flight to safety in global financial markets.
The CoinMarketCap 'Fear and Greed Index,' which reflects market sentiment, recorded a neutral level of 43. A score closer to 0 indicates extreme fear, while a score near 100 signifies extreme greed.
Market analysts predict that Bitcoin's volatility may increase following the Fed's interest rate decision and the results of the U.S. midterm elections scheduled for November 3. The ability of Bitcoin to recover above the $80,000 mark is seen as a key factor influencing short-term price movements.
Meanwhile, at the same time, Bitcoin was trading at 1,065,900,000 won (approximately $80,263) on the domestic cryptocurrency exchange Bithumb, reflecting a 0.30% decrease from the previous day. The Kimchi premium, which indicates the price difference between domestic and international markets, was recorded at 0.81%.
* This article has been translated by AI.
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