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Bitcoin On Track To Post Weakest October In Six Years As US Buyers Retreat Ahead Of Fed Decision
Bitcoin traded around $80,800 on Wednesday and was down 4.2% for October, putting it on track for its weakest October in six years. U.S. buyers stayed on the sidelines ahead of the Federal Reserve's rate decision.
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What happened
Bitcoin traded around $80,800 on Wednesday and was down 4.2% for October, putting it on track for its weakest October in six years. U.S. buyers stayed on the sidelines ahead of the Federal Reserve's rate decision.
Confirmed
Global impact / market context
A negative Coinbase Premium means U.S. buyers pay less than overseas buyers, a sign of soft demand. Weak spot demand means new buyers absorb coins slower than miners create them, which can pressure prices and shift investor positioning.
Analyst inference
Bitcoin closed September at $83,567 and fell to $80,051 by Oct. 28, far below the average October gain of 18.1% since 2020. Short-term traders' profit cushion above their realized price, which means their average cost basis, has narrowed.
Analyst inference
What to watch
- Watch the Coinbase Premium, which measures the price gap between Bitcoin on Coinbase and offshore exchanges. It has not had a positive day this October, with an October average of -0.093. Confirmed
- Watch whether the Federal Reserve's rate decision changes U.S. buyer demand, since investors retreated ahead of it. A shift could affect the Coinbase Premium and spot demand. Proposed
- Watch the $80,000 level and the realized price, since short-term traders have lost most of their buffer. A drop below these levels could prompt further selling. Analyst inference
Affected assets
- BTC — Bitcoin