Bitcoin Dips Below $80,000 as Investors Brace for a Hawkish Federal Reserve

Bitcoin slipped below $80,000 during Thursday’s Asian session as weak technology earnings and the Federal Reserve’s hawkish stance fueled a broader sell-off in risk assets. The decline wiped out much of Bitcoin’s two-day recovery and coincided with $356 million in cryptocurrency futures liquidations over the previous 24 hours.

BTC fell from above $81,700 to approximately $79,800, pulling down the wider crypto market as traders betting on further gains were forced to unwind their positions.

Technology Earnings Disappoint and Pressure Crypto Prices

The sell-off followed Wednesday’s U.S. market close, when Alphabet reported third-quarter revenue and operating income that missed analysts’ forecasts.

The company generated $127.58 billion in revenue, below the expected $127.93 billion. Operating income totaled $40.58 billion, compared with the $43.16 billion estimate. Earnings per share dropped to $2.12 from $2.87 in the same quarter last year.

Google Services revenue reached $96.30 billion, falling short of the $98.40 billion forecast. Google Search contributed $63.35 billion, compared with expectations of $64.85 billion.

Google Cloud delivered a stronger result, generating $30.71 billion against an estimate of $29.10 billion. Despite the cloud division’s performance, Alphabet shares dropped 10% in premarket trading on Thursday as investors focused on the broader earnings shortfall.

The pressure extended to Asian markets, where Samsung shares lost more than 5% after its semiconductor division failed to satisfy heightened investor expectations.

Samsung’s chip business reported a 15-fold increase in operating profit to 106.5 trillion won for the three months through September. However, the result fell below the average analyst estimate of 108.5 trillion won.

The company also projected capital expenditure of 84.4 trillion won, or roughly $63 billion, for the year, an increase of around 60%.

Although Samsung’s group-wide net income climbed 39%, the results unsettled investors. South Korea’s Kospi index fell more than 2%, while Nasdaq futures declined 1.4%.

The weakness in technology stocks spilled over into cryptocurrency markets, pushing Bitcoin, Ether, XRP, Solana and other digital assets lower as investors reduced their exposure to risk-sensitive investments.

Federal Reserve’s Hawkish Stance Weighs on Sentiment

The Federal Reserve maintained its benchmark interest rate at 3.75%–4% overnight. The decision was widely interpreted as a hawkish hold, reflecting continued concerns about inflation despite no immediate change in borrowing costs.

Fed Chair Kevin Warsh said inflation had shown signs of improvement but emphasized that price pressures remained elevated. ING continued to anticipate another rate increase in December following the September hike.

Rick Rieder, BlackRock’s chief investment officer of global fixed income and head of its global allocation investment team, urged investors to avoid making an overly aggressive prediction about the direction of interest rates.

“Real yields remain attractive, and there’s considerable income available across high-quality fixed-income markets,” Rieder said.

He added that BlackRock continues to favor a moderate duration approach, enabling investors to benefit from current income opportunities while remaining patient as economic conditions evolve.

For cryptocurrencies, the prospect of sustained high real yields presents an additional challenge. Attractive inflation-adjusted returns on bonds can encourage investors to favor traditional fixed-income assets over speculative investments such as Bitcoin.

Crypto Futures Liquidations Total $356 Million

Bitcoin’s decline beneath $80,000 triggered further liquidations across derivatives markets, adding to the pressure on bullish traders.

Market data showed that $356 million worth of cryptocurrency futures positions were liquidated over the preceding 24 hours. Long positions accounted for $205 million of the total, reflecting losses among traders who had expected prices to rise.

Bitcoin futures recorded $94 million in liquidations, while Ether futures accounted for another $72 million.

The figures demonstrate how quickly leveraged positions can unravel when market sentiment shifts. With technology stocks weakening and uncertainty surrounding the Federal Reserve’s policy outlook persisting, Bitcoin’s latest retreat has raised fresh questions about whether it can reclaim $80,000 and resume its recovery.