Bitcoin price fell below the key $80,000 level on Tuesday, October 27, extending recent losses as investors reacted to Strategy’s pause in cryptocurrency purchases and growing uncertainty ahead of the Federal Reserve’s interest rate decision.
The world’s largest cryptocurrency declined 0.5% to $79,830.30 by 01:43 ET (05:43 GMT), slipping beneath its established trading range of $80,000 to $87,000.
Meanwhile, broader cryptocurrency markets experienced selling pressure as investors reduced their exposure to riskier assets ahead of major central bank announcements.
Even declining oil prices and an overnight technology-led stock market rally failed to provide meaningful support for Bitcoin and other digital assets.
Bitcoin Price Breaks Below $80,000 as Strategy Halts Weekly Purchases
Bitcoin’s latest decline coincided with a temporary pause in purchases by Strategy, the largest publicly traded corporate holder of the cryptocurrency.
According to a regulatory filing, Strategy Inc. (NASDAQ: MSTR) made no Bitcoin purchases or sales during October 19–25, 2026.
The company also refrained from selling additional shares through its at-the-market equity offering program during the same period.
As of October 25, Strategy held approximately 848,517 BTC, acquired for a combined $64.02 billion, including fees and expenses.
Its average Bitcoin acquisition cost stood at approximately $75,446 per coin.
Although Strategy temporarily suspended its regular Bitcoin accumulation, the company continued managing its capital structure.
During the reporting period, it repurchased 2,068,459 shares of its STRC preferred stock, officially known as Variable Rate Series A Perpetual Stretch Preferred Stock.
The transactions totaled approximately $204.9 million and were financed through existing US dollar cash reserves.
Strategy did not repurchase any other class of securities during the week.
Importantly, the company provided no explanation for its decision to pause Bitcoin purchases.
Nevertheless, the absence of new buying activity from such a prominent institutional holder contributed to cautious market sentiment.
Federal Reserve Rate Decision Adds Pressure to Crypto Markets
The upcoming Federal Reserve monetary policy announcement remains a major focus for cryptocurrency investors.
Markets widely expect the US central bank to maintain its benchmark interest rate at approximately 4.0% when its two-day meeting concludes on Wednesday, October 28.
However, persistent US inflation has raised concerns that policymakers could maintain a restrictive monetary policy stance for longer than previously anticipated.
A more hawkish Federal Reserve outlook could weigh on Bitcoin and other speculative assets by reducing expectations for future interest rate cuts.
Higher borrowing costs generally make riskier investments less attractive, particularly when investors can obtain competitive returns from safer financial instruments.
Consequently, cryptocurrency traders will closely monitor the Fed’s policy statement and commentary for indications of how interest rates may evolve.
In addition, the European Central Bank and Bank of Japan are expected to provide further monetary policy guidance this week.
Both institutions could reinforce concerns about persistent inflation and the possibility of tighter financial conditions.
Ethereum and Solana Decline as Altcoin Markets Weaken
Selling pressure extended beyond Bitcoin, with several major cryptocurrencies recording losses during Tuesday’s trading session.
Ethereum (ETH), the world’s second-largest cryptocurrency by market capitalization, declined 0.6% to approximately $2,307.01.
Meanwhile, BNB slipped 0.3%, reflecting broader caution across the digital asset market.
Solana (SOL) also weakened, falling 1.2% as investors reduced their exposure to alternative cryptocurrencies.
However, some digital assets managed to outperform the broader market.
Cardano (ADA) gained 0.4%, while XRP advanced approximately 0.7%.
XRP’s positive performance followed news that Ripple, the blockchain payments company closely associated with the cryptocurrency, received final US regulatory approval to establish a national trust bank.
The development strengthened sentiment surrounding Ripple’s expanding presence in regulated digital asset financial services.
XRP and Memecoins Outperform Despite Bitcoin Weakness
Although most major cryptocurrencies faced pressure, selected digital assets recorded modest gains.
XRP stood out among larger cryptocurrencies following Ripple’s regulatory milestone.
Meanwhile, the memecoin sector showed relative resilience.
Dogecoin (DOGE) advanced approximately 0.6%, while the TRUMP token gained around 1.7%.
These gains contrasted with the weaker performance of Bitcoin, Ethereum and Solana, highlighting the uneven trading conditions across the cryptocurrency market.
However, the modest advances did not significantly alter the broader cautious sentiment ahead of the Federal Reserve announcement.
Bitcoin Price Outlook: Fed Policy and Strategy Purchases in Focus
Bitcoin’s decline below $80,000 places renewed attention on the cryptocurrency’s recent trading range and the factors influencing investor demand.
Strategy’s decision to pause its weekly Bitcoin purchases has introduced uncertainty surrounding one of the market’s most prominent corporate buyers.
At the same time, expectations surrounding Federal Reserve monetary policy continue to influence demand for risk-sensitive assets.
Investors will now focus on whether Bitcoin can recover above the $80,000 threshold or remain under pressure if financial conditions become less supportive.
The Fed’s upcoming decision, future institutional buying activity and broader global risk sentiment could play a significant role in determining Bitcoin’s next major price movement.
