Bitcoin advanced 1.6% to $80,912 on Tuesday, recovering from an earlier dip below $80,000 as traders positioned ahead of the Federal Reserve's policy announcement. Ethereum outperformed with a 2.2% gain to $2,354, while major altcoins posted similar advances—Solana rose 2.4% to $102, XRP gained 2.1% to $1.33, and BNB climbed 1.3% to $745, according to Binance US data.
The rebound came despite headwinds earlier in the session. According to CoinMarketCap, Bitcoin had traded as low as $79,753 amid institutional ETF outflows and broader risk-off sentiment. U.S. spot Bitcoin ETF assets under management held steady at $107.7 billion as of October 27, showing stable institutional custody even as flows turned negative, CoinMarketCap reported. The price action left Bitcoin range-bound between $78,000 support and $82,000 resistance ahead of the Fed decision.
Ethereum's advance came as developers patched a critical bug in the upcoming Glamsterdam upgrade that could have misdirected staking deposits, according to CoinMarketCap. The fix ensured upgrade security and may have supported sentiment. BitMine, the largest Ethereum treasury firm, also resumed buybacks during the period, CoinMarketCap noted.
Institutional adoption continued to advance in traditional finance. Janus Henderson launched the first Nasdaq-licensed tokenized fund in partnership with Centrifuge, bringing Nasdaq 100 exposure onchain, CoinDesk reported. Separately, CF Benchmarks announced it is bringing Wall Street pricing infrastructure onchain, including data used by BlackRock, according to CoinDesk. The moves signal growing institutional comfort with blockchain-based financial products.
In emerging markets, Brazilian companies turned to stablecoins on election day to hedge against currency volatility, CoinDesk reported, while Japan's top yen stablecoin fell short of its first-year targets, according to CoinDesk. The divergence highlights uneven stablecoin adoption across jurisdictions.
Regulatory clarity improved for select assets. The U.S. Commodity Futures Trading Commission included Tezos in a list of digital commodities generally not considered securities, CoinMarketCap reported. The designation, dated October 6, provides regulatory certainty for the proof-of-stake blockchain, which also launched a Quantumnet experimental network to test post-quantum cryptography defenses on October 24.
Stock Markets
U.S. equities advanced on Tuesday, led by technology shares. The Nasdaq 100 climbed 1.3% to 721.25, while the S&P 500 rose 0.6% to 769.66, according to Twelve Data. The Dow Jones Industrial Average edged up 0.06% to 523.28.
Chipmakers drove the tech rally. Broadcom shares jumped 4% after a coalition of banks—Bank of America, Citi and Morgan Stanley—and Blackstone announced support, CNBC reported. The enthusiasm for semiconductor names extended a recent trend of investors rotating into the sector.
The advance came as markets awaited the Federal Reserve's policy decision. Fed officials are expected to hold interest rates steady at 1.25%, according to CNBC, after last month's rate increase and subsequent signals from senior officials that they need not hurry to move again. However, persistent inflation—stoked by higher energy prices—has complicated the outlook and left policymakers in what the Wall Street Journal described as an "awkward spot."
Gold & Commodities
Gold rose 1.2% to $372.28 on Tuesday, according to Twelve Data, as higher oil prices fueled inflation concerns ahead of the Federal Reserve meeting. Silver gained 1.0% to $49.16.
The advance followed a climb of about 1% in the previous session. "Gold is moving based on the interest rate expectations and inflation risks because of higher energy prices," Soni Kumari, an analyst at ANZ, told CNBC. Markets are focused on the Fed's policy decision for clues to the rate outlook, with inflation fears offsetting some of gold's appeal as a hedge against monetary easing.
Natural gas rose 0.8% to $9.64, according to Twelve Data, while broader commodity markets reflected mixed sentiment around global growth and monetary policy.
Oil
U.S. oil declined 1.4% to $163.88 on Tuesday, according to Twelve Data, retreating from recent highs as traders assessed supply dynamics and demand concerns.
The pullback came despite broader inflation fears tied to energy costs. Higher oil prices have stoked concerns about persistent inflation, complicating the Federal Reserve's policy calculus and supporting gold's advance during the session. The Wall Street Journal noted that inflation risks from elevated energy prices remain a key focus for policymakers.
In the oilfield services sector, Baker Hughes reported lower third-quarter profit, citing prolonged conflict in the Middle East that hit demand for services and equipment in the key region, according to Reuters.
Macro & Global Drivers
Federal Reserve officials enter this week's policy meeting amid debate over what the central bank can and should do to address inflation that shows no immediate sign of abating, according to CNBC. Markets are virtually certain the Fed will hold the policy rate at 1.25%, with all eyes on what Chairman Kevin Warsh will signal about future policy moves.
Warsh has made a point of saying less about forward guidance, the Wall Street Journal reported, but most of his colleagues have not followed his lead, creating what the Journal described as a "noisy" policy environment. Brett Ryan, senior U.S. economist at Deutsche Bank, told CNBC he will be watching what Warsh signals about future moves—something the chairman has said he is highly reluctant to do given economic uncertainty.
The Fed is navigating two debates simultaneously, according to the Wall Street Journal: how much higher rates need to go, and how much to tell the public about the path ahead. After last month's rate increase, senior officials signaled they need not hurry to move again, and investors lowered expectations for a hike this month. Then inflation data came in hotter than expected, leaving policymakers in an awkward position.
In the U.K., investors are watching Wednesday's budget announcement for reassurance on fiscal discipline after bond yields rose globally on concerns over debt loads, the Wall Street Journal reported. U.K. gilts were relatively stable Tuesday, with markets expecting modest spending plans and minimal policy changes.
What to Watch Next
The Federal Reserve's policy decision and Chairman Warsh's press conference will dominate Wednesday's session, with markets looking for signals on the rate path amid persistent inflation. Bitcoin's ability to hold above $80,000 and reclaim the $82,000 resistance level will be key technical markers. U.K. budget announcements and any shifts in Treasury yields could also influence risk sentiment across crypto and equity markets.
Riza Ahnaf is an AI editorial persona used by Knightron Journal to represent content produced through Knightron's AI-assisted editorial workflow. Riza Ahnaf is not a real journalist, employee or founder; the name is an editorial identity, not proof of authorship by a real individual.
