The crypto market is back in the red on October 29, with Bitcoin slipping below $80,000 after the Federal Reserve meeting failed to give risk assets the reassurance traders wanted.
Bitcoin is trading around $79,700-$80,000, down roughly 1% over the past 24 hours. Ethereum has fallen toward $2,300, Solana is back below $100, and XRP is trading near $1.29. ADA has been one of the weaker large-cap altcoins, losing more than 4% over the same period.
The decline is coming from several directions at once.
The Fed kept rates unchanged, but inflation concerns remain alive. Leveraged crypto positions were then flushed out as prices weakened, and another selloff across technology stocks has made investors even less willing to take risk.
What you'll learn 👉
The Fed Pause Wasn’t Enough for Crypto
The Federal Reserve left its target rate unchanged at 3.75%-4.00% on Wednesday.
That decision itself was expected.
The problem was everything around it.
The Fed said economic activity continues to expand at a strong pace and inflation remains elevated. Two FOMC members, Lisa Cook and Beth Hammack, actually voted for a 25-basis-point rate increase at this meeting.
Chair Kevin Warsh’s comments reinforced the idea that the Fed is now in wait-and-see mode.
SUMMARY OF FED CHAIR WARSH’S STATEMENT: 1. Fed to eliminate 1 interest rate-setting vote beginning in Fall 2027 2. Fed expects to hold just 6 policy-setting meetings in 2028, down from 8 currently 3. Overwhelming consensus is that the "monetary medicine is starting to work" 4. Warsh says he is "unwilling and unable" to call financial conditions tight 5. Warsh says that inflation remains elevated in the US 6. The Fed awaits more information in determining policy path The Fed is now in "wait and see" mode.
— The Kobeissi Letter (@KobeissiLetter) October 28, 2026
He said the Fed believes its monetary policy is beginning to work, but he also said he is unwilling to describe current financial conditions as tight. At the same time, policymakers still want more information before deciding their next move.
That leaves a December rate increase very much in play.
Reuters reported that markets were still pricing roughly an 80% probability of a December hike following the meeting. Treasury yields moved higher after the decision.
For crypto, this is not the outcome bulls wanted.
A Fed pause is useful, but the market was hoping for stronger evidence that the tightening cycle was close to ending.
Instead, traders got a central bank that still considers inflation too high and has two policymakers already voting to raise rates.
Read also: 3 Altcoins to Watch Before the FOMC Decision (XRP Makes the List!)
Leverage Made the Selloff Worse
The first move lower was then amplified by derivatives positioning.
Total crypto derivatives open interest fell around 7.35% to $318.6 billion as leveraged positions were closed.
Bitcoin long liquidations jumped to roughly $51.96 million, an increase of more than 1,000% from the previous measurement period.
That creates a familiar crypto feedback loop.
Price falls slightly.
Highly leveraged long positions hit their liquidation levels.
Those positions are automatically sold.
That additional selling pushes price lower and triggers another group of liquidations.
Funding rates also fell around 37% to approximately 0.00437%, which shows some of the excess bullish positioning is already being removed.
This is one reason Bitcoin’s move from above $81,000 toward $80,000 happened faster than the original macro catalyst alone would imply.
The Fed created the uncertainty.
Leverage accelerated the move.
Selling Is Spreading Across the Crypto Market
This is also not an isolated Bitcoin correction.
Ethereum is trading near $2,300 and is down around 2%. Solana has dropped to roughly $100, XRP has lost close to 3%, and Cardano has fallen toward $0.20.
Broader crypto categories are declining together.
Layer 1 assets have lost around 0.9%, and digital assets classified as commodities by U.S. regulators have posted a similar decline.
Sentiment is weakening too.
The Fear & Greed Index has slipped from 46 to 44, keeping the market in neutral territory but showing that traders are becoming more cautious.
The Altcoin Season Index has also fallen around 5%.
That fits what we are seeing on the charts.
When traders become defensive, money tends to leave smaller and more speculative tokens first. Bitcoin dominance can then remain elevated even when BTC itself is falling.
The Stock Market Is Adding Another Problem
Crypto is not dealing with the Fed in isolation.
Risk appetite has also taken another hit from the technology sector.
Alphabet shares fell about 10% in after-hours trading after its quarterly report, wiping nearly $400 billion from the company’s market value. Investors focused on weaker advertising results, negative free cash flow and enormous spending on AI infrastructure.
Nasdaq futures subsequently dropped around 1%.
Asian markets followed the weaker tone. South Korea’s KOSPI fell about 2.6%, and broader Asia-Pacific equities outside Japan also moved lower.
That is relevant to Bitcoin because BTC continues to trade like a high-risk macro asset during periods of market stress.
When investors cut exposure to expensive technology and speculative assets, crypto often gets included in the same trade.
The combination today is particularly uncomfortable:
high Treasury yields, uncertainty about another Fed hike, pressure on technology stocks and leveraged crypto traders being forced out.
What Comes Next?
Bitcoin is now testing the $79,000-$80,000 region again.
That area has repeatedly attracted buyers over the past week, so holding it would give BTC another chance to stabilize.
If $79,000 fails, the next larger zone I would watch is around $77,000.
For Ethereum, $2,280-$2,300 is the immediate area to defend, and XRP remains close to support around $1.25-$1.28.
The next important macro test is already approaching.
U.S. inflation data is due today, giving markets another reading on whether the Fed can afford to remain on hold in December.
If inflation comes in hotter than expected, rate-hike expectations could increase again and put more pressure on crypto.
A softer reading would give Bitcoin and altcoins a chance to recover some of the post-FOMC losses.
For now, the crypto market is down because several bearish forces have lined up at once.
The Fed did not provide a clear dovish signal, leverage was too high, sentiment is deteriorating and the technology-stock selloff is reducing appetite for risk.
Bitcoin holding $79,000-$80,000 would calm some of those concerns.
A clean break below it could bring another liquidation wave.
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