Crypto opened the week in the red. Bitcoin led the way lower, and Ethereum, BNB and XRP trailed close behind. The Fear and Greed Index dropped to 43, which says plenty about the mood. Few traders are in a hurry to buy.
So, why is crypto down today? Three pressures stand out. The Federal Reserve is about to decide on rates. Money keeps leaving Bitcoin and Ethereum ETFs. Oil prices are also keeping inflation worries alive. Bitcoin’s failed push towards $85,000 hurt confidence further.
The weakness is widespread. Leveraged bulls were squeezed as well, which made the fall steeper. Here is what happened, where prices sit and what to watch next.
Why Is Bitcoin Price Dropping Today? BTC, ETH, BNB and XRP Slip Before the FOMC Meeting
Bitcoin traded near $80,250, down 0.51% over 24 hours. It moved between $79,280 and $80,710. Ethereum sat around $2,324. Traders see $2,293 as possible support, and $2,355 was the day’s high. BNB eased 0.23% to $743.85, within a $732.49 to $745.23 range. XRP lost 0.66 per cent to about $1.30, after touching $1.27.
All eyes are on the Fed, which meets on Oct. 27-28. Traders put the odds of no change at about 90%. That would hold the target range at 3.75% to 4.00%. Another hike can’t be ruled out, though. Until the decision lands, buyers are sitting on their hands.
Traders are watching the Fed’s October 27-28 meeting for clues on interest rates. [Reuters]
Bitcoin and Ethereum ETF Outflows Weaken Market Demand
Fund flows are a good gauge of institutional appetite, and right now they point the wrong way.
- On October 22, spot Bitcoin ETFs lost $635.6 million. BlackRock’s IBIT led the exits with $254M.
- Ethereum funds shed around $111 million that session. ETHA accounted for roughly $75.45 million of it.
- Bitcoin funds bled another $137.9 million on October 23. That kept the pressure on into Friday.
Long Liquidations Increase Pressure as Derivatives Trading Accelerates
Derivatives data shows who took the hit. Mostly, it was traders betting on higher prices.
- The snapshot shows $181.43 million in liquidations. The reporting period could not be independently verified.
- Longs made up $121.4 million of that. Shorts accounted for $60.03 million. Falling prices could add to the pain for bulls.
- Daily trading volume jumped 84.81% to $726.85 billion. Open interest rose 2.16% to $341.55 billion.
- High open interest alongside lower prices may hint at bearish bets. It can’t prove what traders intend. More turnover means more activity, not buyers returning.
Middle East Tensions and Oil Prices Complicate the Outlook
Crypto doesn’t trade in a vacuum. Energy markets are now part of the story.
- Supply disruption remains a real risk. Renewed diplomacy hasn’t ended the war between the U.S. and Iran.
- Brent crude recently topped $117 per barrel as regional tensions climbed.
- Costly energy lifts transport and production costs. That can keep inflation elevated and make the Fed’s job harder.
- Any escalation could bring inflation fears back. That would likely weigh on BTC, ETH, BNB and XRP.
BTC, ETH, BNB, XRP Price Prediction: Key Levels to Watch
Anyone chasing a BTC, ETH, BNB, XRP price prediction should begin with levels the market has already tested. Bitcoin’s ceiling is the $85,000 mark it couldn’t reach.
Its $79,280 daily low is the nearest floor. Ethereum has $2,293 as possible support and $2,355 as resistance. BNB is boxed between $732.49 and $745.23. For XRP, watch the $1.27 low.
The Fed decision on Oct. 27-28 is the next big trigger. A hold may calm nerves, while a hike could test those lows. Nobody can call it with certainty.
Also Read: ETH Price Recovery: How Ethereum’s Past Shapes Market Expectations
FAQs on Why Crypto Is Down Today
Q1: Why is Bitcoin price dropping today?
A1: ETF outflows of $635.6 million and $181.43 million in liquidations are weighing on BTC. It trades near $80,250, down 0.51%.
Q2: When does the Fed announce its decision?
A2: The Fed meets on Oct. 27-28. Traders see about 90% odds of no change, leaving rates at 3.75% to 4.00%.
Q3: Where are ETH, BNB and XRP trading?
A3: Ethereum sits around $2,324, and BNB eased 0.23% to $743.85. XRP lost 0.66 per cent to about $1.30.
Q4: How do oil prices affect crypto?
A4: Brent crude recently topped $117 per barrel, reviving inflation fears. That complicates Fed policy and can dent demand for risk assets.
Disclaimer:
This article is for information only and is not financial advice. Prices for BTC, ETH, BNB and XRP move fast, and ETF flows, liquidation figures and the Fed’s 90%-odds hold expectation may change quickly. The liquidation data could not be independently verified. Readers should research independently, weigh their own risk and speak to a licensed Australian financial adviser before trading.
