Bitcoin Price Rests Near $80,500 as Midterms, Fed Decision Loom

Bitcoin's price traded near $80,500 on Tuesday, recovering from an early-morning low near $79,400. It maintained a level above $80,000 as the Fed decision and the November midterms approach.

According to Bitcoin Magazine Pro data, the price ranged between about $79,400 and $80,800 throughout the day. By mid-afternoon Eastern time, the asset was up approximately 0.3% compared to the previous 24 hours.

This stability follows a volatile period, as Bitcoin fell under $80,000 on Monday due to investor risk aversion, driven by worries over AI-sector valuations and increased oil prices. Spot Bitcoin ETFs have also experienced outflows.

Despite this selling, panic has not set in, with the Bitcoin price generally staying within a band between roughly $79,000 and $81,000 this week. The longer-term outlook is challenging for those who purchased near the peak.

Bitcoin's all-time high, set in October 2025, is near $126,000, meaning the current price is about 30% below that high. The Federal Reserve's policy meeting is set for October 27 and 28, with the decision expected Wednesday.

The central bank previously held its target range at 3.75% to 4% after a September hike, and officials have indicated another increase might be necessary by year-end. Traders are watching Fed Chair Kevin Warsh's press conference for cues regarding a potential December hike.

Regarding Bitcoin's outlook amidst the midterms, higher interest rates reduce liquidity for speculative assets, suggesting a hawkish surprise could push the price toward or below $80,000. Conversely, a hold or softer tone might allow buyers to target the $88,000 range seen earlier in the fall.

The November 3 midterm elections introduce another variable. One Polymarket reading cited shows prediction markets favoring Democrats winning both chambers of Congress. TD Cowen analysts cautioned that the results could delay the CLARITY Act for two years.

Prediction markets assigned a 90% chance to Democrats winning the House and 62% to winning the Senate, a scenario TD Cowen deemed the most negative for bitcoin. A Republican sweep was seen as the best outcome for crypto, while a split Congress was viewed as better than a full Democratic control.

At the time of writing, the bitcoin price is roughly $80,600.