SKN | Bitcoin Recovers to $80,800 Ahead of Fed Meeting as Liquidations Exceed $810 Million

Key Points:

• Bitcoin recovered to approximately $80,800–$80,936 on Sunday after falling to $79,146 during a sharp weekend selloff.
• More than $810 million in crypto positions were liquidated over 24 hours, including approximately $689 million in bullish positions, according to CoinGlass data cited by Investing.com.
• The Federal Reserve’s October 27–28 meeting, elevated oil prices, and pressure on corporate Bitcoin treasury funding strategies remain key factors for the market.

Bitcoin rebounded toward $80,800 on Sunday after a sharp weekend selloff triggered extensive liquidations across cryptocurrency markets. The recovery followed a decline to $79,146, the cryptocurrency’s weakest level in more than a month, as thin weekend liquidity amplified selling pressure. With the Federal Reserve’s October 27–28 policy meeting approaching and oil prices elevated amid the Iran conflict, investors are assessing whether BTC can stabilize or face another wave of volatility.

Bitcoin Reclaims $80,000 After Heavy Liquidations

Bitcoin recovered above the psychologically important $80,000 threshold after briefly falling to $79,146 on Saturday. Investing.com reported that BTC was trading at approximately $80,936.30 as of 00:53 Eastern Time on Sunday, moving closer to $81,000.

The rebound followed more than $810 million in cryptocurrency liquidations over 24 hours, including approximately $689 million in bullish positions. Long liquidations occur when traders betting on rising prices are forced to close positions after prices fall far enough to breach margin requirements.

Such forced closures can intensify market declines because they generate additional selling at a time when liquidity may already be limited. Weekend trading conditions can magnify these movements, although a recovery above $80,000 does not necessarily confirm that selling pressure has ended.

Technical levels remain in focus. Bitcoin slipped below its 50-day moving average near $81,700, while traders were monitoring potential support around $78,400 and $77,876, according to the report. These levels are reference points rather than guaranteed floors, and price behavior around them will depend on liquidity and broader market conditions.

Federal Reserve Policy and Oil Prices Shape the Outlook

The Federal Reserve’s meeting on October 27–28 is the next major macroeconomic event for cryptocurrency markets. Investors will be watching policymakers’ decisions and guidance for indications of how interest rates may evolve as inflation risks and economic conditions change.

Higher-for-longer interest rates can weigh on Bitcoin by supporting the dollar and increasing the relative appeal of interest-bearing assets. A less hawkish outlook may improve sentiment toward risk-sensitive investments, although the effect will depend on what markets have already priced in.

Oil prices add another source of uncertainty. Brent crude was trading above $117 per barrel, according to Investing.com, as the Iran conflict heightened concerns about energy supply and inflation. Persistently expensive energy could complicate the Federal Reserve’s policy choices and limit expectations for monetary easing.

For Bitcoin, the combination of geopolitical uncertainty, interest-rate expectations, and fragile market liquidity creates a challenging environment in which rallies may remain vulnerable to sudden reversals.

Corporate Bitcoin Buyers Face Financing Trade-Offs

Pressure is not limited to traders. Corporate Bitcoin treasury companies are also balancing asset accumulation against the cost of raising capital. According to Fidelity Digital Assets, perpetual preferred-stock offerings have financed purchases of approximately 136,000 BTC since 2025.

Companies including Strategy and Strive have increasingly used preferred shares to raise funds for Bitcoin purchases. These securities can attract investors seeking income, but recurring dividend payments create financing costs that must be managed alongside the goal of accumulating additional BTC.

Strategy recently spent approximately $193 million repurchasing preferred shares while acquiring just 267 Bitcoin, illustrating the competing demands on its capital. The decision highlights how treasury companies may need to prioritize financing obligations or manage their capital structure when funding conditions change.

Investors Reassess How to Access Bitcoin Exposure

Xapo Bank CEO Seamus Rocca said wealthy Bitcoin investors are increasingly borrowing against their holdings and seeking yield rather than selling their cryptocurrency. This suggests that some long-term holders are exploring ways to access liquidity while retaining exposure to BTC.

Borrowing against Bitcoin can, however, introduce collateral and liquidation risks if prices fall sharply. The strategy is therefore different from simply holding the asset, particularly during volatile periods when collateral values can decline quickly.

The near-term outlook will depend on Bitcoin’s ability to hold above $80,000, the scale of further liquidations, and the Federal Reserve’s policy signals. A sustained recovery could indicate that selling pressure is easing, while renewed weakness in equities, higher energy prices, or a more hawkish policy outlook could bring lower support levels into focus. Investors will also be watching whether corporate treasury companies can continue funding purchases without allowing financing costs to overwhelm their accumulation strategies.