Bitcoin recovered to around $80,800 on Sunday, following a sharp sell-off over the weekend, as investors assessed the scale of the massive liquidations in the cryptocurrency market ahead of the Federal Reserve's anticipated interest rate decision.
The Federal Reserve meeting scheduled for October 27-28 is expected to be a major driver of Bitcoin prices, as traders await any signals that will reveal whether monetary policymakers will keep interest rates unchanged or proceed with a tightening course.
Higher interest rates could put pressure on Bitcoin by strengthening the dollar and reducing demand for high-risk assets, while a less restrictive approach could support recovery prospects.
The rise in oil prices has further complicated the picture, with Brent crude trading above $117 amid the war with Iran, raising concerns about continued inflationary pressures.
Bitcoin fell to a low of $79,146.00 on Saturday, its weakest level in more than a month, before recovering the important psychological level of $80,000.
According to Coinglass data, more than $810 million in cryptocurrency positions were liquidated in 24 hours, including about $689 million in bullish bets.
Low liquidity over the weekend exacerbated selling pressure, with leveraged positions being forcibly closed as Bitcoin fell below $80,000. Bitcoin was trading at $80,936.30 by 7:53 AM Saudi time, nearing the $81,000 level.
Bitcoin also slipped below its 50-day moving average near $81,700, while traders are watching potential support levels at $78,400 and $77,876.
Meanwhile, companies that hold Bitcoin vaults face growing challenges in balancing cryptocurrency purchases with funding obligations.
According to Fidelity Digital Assets, the perpetual preferred stock offerings have funded purchases of approximately 136,000 bitcoins since 2025.
Companies including Strategy (NASDAQ) and Strive (NASDAQ) have increasingly turned to preferred stock to raise capital, but periodic dividend payments may constrain future purchases.
Strategy recently spent $193 million to repurchase preferred shares, while its Bitcoin purchases were limited to just 267 units, highlighting the competition for available capital.
