Key Highlights
- Bitcoin (BTC) held near $82,000 after an around 1.7% drop in the last 24 hours, with support tested around the $81,000 level amid risk-off selling in the crypto market.
- Houthi attacks on Saudi airports and oil facilities pushed oil above $111-$112, contributing to equity and crypto market declines ahead of the Fed’s Oct.28 rate decision.
- XRP traded around $1.31 and Ethereum near $2,380, both under pressure with major support levels in focus.
- Despite the growing tension in the Middle East and a spike in crude oil prices, the overall crypto market remained calm with no major price movement on Friday as BTC managed to hold its position around $81,000.
Bitcoin (BTC) traded near $82,000 on Friday despite a sharp decline the previous day, while XRP hovered around $1.32 and Ethereum traded close to the $2,398 level. The overall crypto market pulled back alongside equities as geopolitical tensions in the Middle East and uncertainty ahead of the Federal Reserve’s policy meeting weighed on risk assets.
The total crypto market capitalization fell roughly 3% over 24 hours, with trading volumes elevated as liquidations exceeded $400 million, mostly from long positions. Bitcoin dominance edged higher as altcoins underperformed in the risk-off environment.
Geopolitical Tensions Drive Oil Higher and Pressure Crypto Market
Houthi forces claimed responsibility for multiple strikes on Saudi Arabia this week, including an attack on King Fahd International Airport in Dammam that killed at least two people and injured others. Additional incidents involved oil facilities such as the Shaybah field, where falling debris from intercepted drones caused fatalities.
These attacks form part of a broader escalation involving Yemen’s Iran-backed Houthis targeting Saudi aviation and energy infrastructure. Oil prices responded sharply, with Brent crude climbing above $111 to $112 a barrel, the highest levels in months. Higher energy costs and supply concerns contributed to the sell-off in U.S. equities, where the Nasdaq Composite dropped about 2.6% on Thursday, and the S&P 500 fell more than 1%. Asian markets also declined overnight.
The rise in oil and equity weakness spilled into BTC and other cryptocurrencies, which have shown increased correlation with traditional risk assets in recent sessions. Traders cited the combination of geopolitical risk and softer tech sentiment as key drivers of the pullback.
Crypto Market Brace for Federal Reserve Decision
The Federal Open Market Committee meets on Oct. 27 and 28, with a decision expected on Oct. 28. Markets largely anticipate the Fed will hold the federal funds rate steady in the 3.75% to 4.00% range following a 25-basis-point hike in September. Economists and Fed officials have signalled little urgency for another move this month, though many expect a potential increase by year-end if inflation remains sticky.
U.S. jobless claims recently came in lower than expected, while inflation data continues to keep a tightening bias in place. Crypto traders have positioned cautiously ahead of the announcement, with some profit-taking after earlier gains. Spot BTC ETFs saw mixed flows in recent sessions, including solid inflows earlier in the week that were later offset in parts of the market.
Bitcoin Price Movement and Technical Picture
According to CoinGecko, BTC opened the week higher, briefly pushing above $84,000 before reversing on Thursday. It fell about 3% to 3.4% to trade near $81,300 to $81,800, briefly dipping below $81,000 before stabilizing. On Friday morning, BTC prices held in a range around the $81,000 level, with 24-hour lows near $80,900 to $81,000 and highs recovering modestly.
The $81,000 area has acted as near-term support for BTC after the recent drop from the mid-$84,000 level. A sustained break below this zone could open the path for BTC toward the $80,000 psychological level and previous weekly lows. Resistance sits near $82,500 to $83,000, with stronger overhead supply around the recent highs near $84,500 to $85,000. Volume spiked during the decline, consistent with liquidations of leveraged positions. Momentum indicators have cooled from overbought readings earlier in the week, leaving Bitcoin in a consolidative phase as traders await clearer macro signals.
XRP Price Action and Analysis
XRP traded near $1.32, down roughly 1% to 4% over the past day depending on the exact snapshot, after earlier strength. It has ranged between approximately $1.30 and $1.35 in recent sessions. The token underperformed Bitcoin slightly during the broader risk-off move.
Support for XRP appears around $1.30, with a break potentially testing lower levels near $1.28 to $1.29. Resistance is clustered near $1.35 to $1.38. Trading volume remained solid but did not show independent strength, as XRP moved largely in line with the overall market. No major project-specific catalysts dominated price action on Friday. Instead, flows reflected the general caution ahead of the Fed meeting and the impact of higher oil prices on risk appetite.
Ethereum Faces Pressure Near $2,398
Ethereum declined alongside the market, trading near $2,380 to $2,400 after a drop of roughly 3% to 3.5% on Thursday from levels above $2,500. It has tested the $2,398 area highlighted in recent closings and continues to face selling pressure near that zone.
Key support lies around $2,360 to $2,380, with a deeper move possibly targeting the $2,300 region if risk sentiment worsens. Resistance remains at $2,450 to $2,500. Ethereum’s relative performance tracked Bitcoin’s decline, though staking activity and network developments provided some underlying demand. Open interest and funding rates reflected a reduction in leveraged long exposure following the sell-off.
