Bitcoin Slips Below 80K as Fed Looms, ETF Outflows Mount and Regulatory Uncertainty Persists

Bitcoin opened the week under pressure, trading near $80,100 on Monday morning after slipping below the psychologically critical $80,000 level during Asian hours. Traders were broadly cutting risk ahead of the Federal Reserve's two-day policy meeting beginning Tuesday, with Ethereum and XRP each dropping about 1.8% to lead the major altcoins lower.

The weekend selloff proved especially painful for leveraged bulls. Bitcoin touched $79,146 on Saturday, its first move below $80,000 since October 15, and exchanges liquidated more than $810 million in positions within 24 hours, with approximately $689 million of that coming from long bets. US spot Bitcoin ETFs piled on with $635.6 million in outflows on October 22 and another $137.9 million on October 23, according to Farside Investors. Even so, cumulative net inflows into US spot Bitcoin ETFs stood at roughly $57.25 billion through October 23, underscoring how deeply institutional capital has already committed to the asset class.

Regulatory Gap Leaves Crypto Vulnerable, JPMorgan Warns

Beyond price action, a fresh note from JPMorgan analysts highlighted a structural problem facing the crypto industry. The bank said recent moves by US regulators have made it easier for institutions to participate in digital assets, partly cushioning the blow from the failure of the Clarity Act on Capitol Hill. However, JPMorgan cautioned that agency-level actions carry a fundamental weakness: a future administration could reverse them at any time, leaving political and legal risk in place until Congress passes a durable crypto market structure law.

Separately, CoinDesk reported this morning that more than 11 million Bitcoin now sits in wallets with no known owner. Analysts say the figure reflects how long retail investors have been active in the market, with coins accumulated years ago lying dormant in wallets whose keys may be lost or simply held by long-term believers who have never sold. Bitcoin's 30-day volatility range has also compressed sharply, narrowing from 13% to just 6%, with price locked between $80,000 and $86,000 for nearly two consecutive weeks. Traders and analysts broadly interpret that kind of tight consolidation as a market waiting for its next major catalyst, with the Fed decision on Wednesday now the most immediate candidate to break the gridlock.