Bitcoin Price Nears $81,000 Ahead of the Fed Decision as Traders Watch Rates

In today's bitcoin price news, Bitcoin has risen nearly 2% to just under $81,000, according to CoinDesk, recovering from a weekend dip to nearly $79,000. Ether gained about 2% to just above $2,350. The prices below are from CoinDesk's report in Asian morning hours on 28 October and will have moved since.

What the Market Did

Other large assets also moved higher in the same report. XRP and Dogecoin rose roughly 3%, Solana gained about 2% to around $102, and Zcash rose 8% to about $1,320. CoinDesk adds that technology stocks extended their climb, which has often moved in step with crypto during risk-on days, though the link is not constant.

The Event Traders Are Watching

The Federal Reserve is due to announce its rate decision on Wednesday 28 October, later in the day. CoinDesk says traders are looking for signals about a possible rate increase in December. A rise in rates would raise borrowing costs and has tended to draw money away from riskier assets, including crypto, though past reactions have varied and are not a guide to what happens next.

This article was written before the decision. Check the Fed's announcement and a live price source for the outcome and the market's reaction.

Why Rate Decisions Move Crypto Markets

Crypto trades around the clock, so it often reacts first to news that lands outside normal stock market hours. Interest rate expectations feed into how much investors are willing to pay for assets that do not produce income. Leveraged traders can add to moves, because positions that are forced to close create extra buying or selling. Volatility around scheduled events is common, in either direction.

What Traders Can Do About Event Risk

Scheduled events are known in advance, which gives traders a chance to prepare:

• Check position sizes before the announcement, using the approach in position sizing.
• Look at your liquidation price if you use leverage. See how liquidation price is calculated.
• Expect wider spreads around the announcement, which raise the cost of market orders. See the bid-ask spread.
• Consider whether to trade at all. Staying out is a position too.

Bitval offers margin trading and futures markets, and Bitval's futures fees are 0.03% for makers and 0.06% for takers, charged on top of any price move.

Keeping the Move in Context

A move of a couple of percent in a day is common in crypto and does not by itself signal a trend. Bitcoin has traded in a range of roughly $79,000 to $81,000 this week, according to the reports above, and a single day's recovery does not settle which way it breaks.

You can create a Bitval account to see the markets Bitval currently offers.

This article is for informational purposes only and does not constitute financial advice or a prediction of future prices. It summarises press reports, which may change or differ between providers. Trading crypto carries a risk of loss.

Sources: CoinDesk: Bitcoin nears $81,000 ahead of Fed decision