Bitcoin is currently testing the 80,000 USD support level as the market prepares for a week of significant US macroeconomic data and corporate earnings reports. The Federal Open Market Committee is scheduled to decide on federal funds rates this Wednesday, with markets assigning a 90 percent probability that rates will remain within the current 3.75 to 4 percent range.
Economist Robin Brooks suggests that the Federal Reserve is unlikely to hike rates, citing potential financial instability and concerns regarding debt in the AI and data center sectors. Investors are also monitoring the Personal Consumption Expenditures index, the Fed's preferred inflation gauge, which is set for release on Thursday alongside US third-quarter GDP figures.
Equity markets remain under pressure due to concerns over the AI sector, with the Nasdaq Composite closing at 25,955 points on Friday. Major technology companies including Microsoft, Alphabet, Amazon, and Intel are expected to release their third-quarter earnings this week, representing approximately 20 percent of S&P 500 companies.
Bitcoin is currently on track to conclude October with a 4 percent decline if prices remain near the 80,000 USD mark. Recent market volatility led to the liquidation of nearly 150 million USD in long positions on Saturday as the price briefly dipped to 79,145 USD. Analysts note a bid wall of 73 million USD supporting the price above 79,300 USD.
