Bitcoin slips back toward $80,600 ahead of Federal Reserve rate decision

Crypto markets rally ahead of the Federal Reserve's rate decision

Cryptocurrency prices moved higher on Wednesday ahead of the US Federal Reserve's interest rate announcement expected in the afternoon. The CoinDesk live update, published at 8:57 a.m. EDT and updated 34 minutes before being written, showed every major token in positive territory in the hours leading up to the decision.

Bitcoin (BTC) was trading around $80,578, up about 0.79 percent. Ether, solana and XRP were also trading higher. Market data listed at the top of the source showed Ether up 0.80 percent, XRP up 0.43 percent and solana up 1.22 percent.

Bitcoin gives up most of its early gains

In the hours before the update, bitcoin slipped by roughly $1,000 and settled back near $80,600, where it had stood on Tuesday in US trading hours. The article describes the earlier advance as "hardly much of an advance to begin with."

Among the major tokens, ether, solana and XRP were little changed at the time of the update. Hyperliquid (HYPE), dogecoin (DOGE) and chainlink (LINK) were each higher by more than 1 percent. Equity futures were also off session highs, with the Nasdaq 100 up 0.3 percent and the S&P 500 up 0.2 percent.

Investors watch for Fed policy signals

Bond yields were flat and oil was up about 2 percent at the time of writing.

The article says the main focus for markets that day was the Fed meeting results. The prevailing expectation, described as "conventional wisdom," was that the central bank would hold its policy rate unchanged while issuing firm language in its official statement and in the follow-up press conference. That approach has been described as a "hawkish hold," with officials preparing markets for a possible rate increase in December.

Key numbers

• Bitcoin (BTC): $80,578.71, up 0.79 percent


• Ether (ETH): $2,338.15, up 0.80 percent


• XRP: $1.32, up 0.43 percent


• Solana (SOL): $101.24, up 1.22 percent


• Hyperliquid (HYPE): $80.34, up 1.94 percent


• Bitcoin slipped roughly $1,000 in the hours before the update, returning to about $80,600


• Nasdaq 100 up 0.3 percent; S&P 500 up 0.2 percent


• Oil up about 2 percent; bond yields flat

Other crypto news from the same day

The source page also listed several separate stories published around the same time, including Ripple's final Office of the Comptroller of the Currency approval to launch a national trust bank, which adds federal oversight to Ripple's RLUSD token. It noted BlackRock, SBI and Startale exploring a link between tokenized funds and a Japanese yen stablecoin, and a separate report that Canada has proposed capping stablecoin redemption fees at 1 percent and banning yield on redemptions.

Other developments reported that day included Bithumb investigating a data leak following an internal mobile systems breach, Galaxy Digital reporting a $323 million third-quarter profit and announcing a new $200 million share buyback, and Ark Invest buying $5.2 million of Circle shares while selling $15.9 million of its Bitcoin ETF as bitcoin pulled back.

Why this matters

Central bank interest rate decisions are closely watched by crypto and traditional asset investors because changes in rates affect borrowing costs and the attractiveness of different kinds of investments. A decision to hold rates steady, combined with signals about future hikes, can shape how markets, including cryptocurrency markets, respond.

What happens next

According to the source, the Fed was set to release its meeting results on Wednesday afternoon, followed by a statement and a press conference by Chair John C. Williams. The update noted that the widely held expectation was a hawkish hold, with officials preparing markets for a possible December rate increase. The article does not confirm what actually happened at the meeting.

Sources

• CoinDesk, "Live updates: Bitcoin edges higher ahead of Fed decision Wednesday afternoon"

Read also: What to watch at the Fed's Oct. 28 rate decision: possible dissents, easing financial conditions, and inflation

Read also: Bitcoin climbs toward $81,000 before Fed decision; ZEC, ETH lead gains