Bitcoin price hovered near $80,500 for most of Tuesday, holding above the $80,000 level, which has become a market watershed. According to Bitcoin Magazine Pro, the price fluctuated between approximately $79,400 and $80,800 during the day, and as of mid-afternoon Eastern Time, the asset had risen about 0.3% over the prior 24 hours.
This stable movement followed a period of significant volatility. On Monday, Bitcoin’s price fell below $80,000 as investors reduced risk exposure, weighed down by concerns over AI sector valuations and rising oil prices. Spot Bitcoin ETFs have also continued to experience outflows. However, the selling pressure has not escalated into panic. Since the beginning of the week, Bitcoin’s price has largely traded within a range of approximately $79,000 to $81,000.
From a longer-term perspective, the situation is not optimistic for those who bought at higher levels. Bitcoin’s all-time high of approximately $126,000 was reached in October 2025, and the current price is about 30% lower than it was a year ago.
The Federal Reserve will hold its policy meeting from October 27 to 28, with the decision to be announced on Wednesday. Following its September rate hike, the central bank has kept the target interest rate range at 3.75% to 4%, and officials have signaled that another rate increase may still be necessary before the end of the year.
Market expectations for the last clear disclosure were in early October, when a hold on interest rates was favored, but that data is now outdated and likely has changed. Traders will be watching Federal Reserve Chair Kevin Warsh’s press conference for clues on a December rate hike.
Bitcoin logic under the backdrop of midterm elections
The logic behind Bitcoin is straightforward. Higher interest rates drain liquidity from speculative assets, so if the Federal Reserve releases an unexpectedly hawkish signal, the price is likely to drop back to around $80,000 or lower.
If interest rates remain unchanged or the wording is more dovish, buying pressure could have room to push prices back toward the $88,000 range seen earlier this fall. The midterm elections on November 3 add another layer of uncertainty. According to a Polymarket reading cited in recent reports, prediction markets favor the Democratic Party winning both chambers of Congress.
For the crypto industry, the most immediate policy issue is the market structure bill still pending advancement, and how lawmakers vote on it may influence how the industry views these elections. Bitcoin and other risk assets have historically risen in the 12 months following past midterm election cycles.
TD Cowen analysts warn that the election outcome could stall the CLARITY Act for two years. Predictive markets assign a 90% probability to Democrats winning the House and a 62% probability to winning the Senate; TD Cowen believes this scenario is most unfavorable for Bitcoin.
A divided Congress with Republicans retaining the Senate is seen as more favorable, while a Republican sweep is considered the best path for the crypto industry. The bill has stalled since a failed Senate cloture vote in September, with lingering disagreements among lawmakers over ethics provisions and stablecoin yields.
As of press time, the price of Bitcoin is approximately $80,600.