Bitcoin Climbs Toward $81K as Fed Decision and Ripple Bank Charter Shake Markets

Bitcoin pushed back toward $81,000 on Wednesday morning as a tech-stock rally lifted risk appetite across financial markets. Bitcoin rose nearly 2% to just under $81,000 ahead of the Federal Reserve's rate decision, while major cryptocurrencies broadly advanced. Galaxy said Bitcoin's bear market likely ended in June and that the cryptocurrency has entered an accumulation phase that historically preceded rallies.

Markets expect rates to remain between 3.75% and 4%, with an 82% probability of a December hike priced in. Traders are watching for signals of a December rate increase, while a daily Bitcoin close above $82,500 could indicate that the recovery is gaining momentum. Bitcoin ETFs snapped a two-day outflow streak, pulling in $110.34M today, led by BlackRock.

Downtober Threatens Bitcoin's Seasonal Reputation

Despite Wednesday's bounce, Bitcoin remains on pace for a historically rare back-to-back losing October. Bitcoin has remained on course for a second consecutive October loss, challenging its Uptober reputation as weakening U.S. spot demand offsets renewed purchases through exchange-traded funds ahead of the Federal Reserve's October 28 decision. U.S. spot Bitcoin funds attracted $176 million on October 27, according to SoSoValue data, with BlackRock's IBIT accounting for $151.5 million and Fidelity's FBTC for $24.5 million.

Bitcoin analysis shows weak spot demand and mixed sentiment, though a November rebound is possible if stronger buying pressure emerges to reverse the slide. On the regulatory front, a significant institutional milestone emerged Tuesday when Ripple secured a major U.S. banking credential. Ripple received final approval from the U.S. Office of the Comptroller of the Currency to establish a national trust bank supporting RLUSD and institutional digital asset custody. Chainlink also launched CustodySync, allowing qualified custodians to enable assets held in compliant custody to serve as collateral in DeFi lending, introducing new sources of collateral for on-chain credit markets.