Bitcoin (BTC) traded near $81,558 on Saturday, experiencing a slight dip of 0.73% for the day. This follows a tumultuous week where the cryptocurrency briefly fell below the $80,000 mark before staging a recovery.
Earlier in the week, BTC reached a high above $84,000 but struggled to maintain its momentum amid stronger economic data from the U.S. and rising expectations of further rate hikes by the Federal Reserve.
On Friday, the crypto markets found stability alongside a rebound in South Korean equities. The KOSPI Composite Index closed at 5,668, up 2% on the day, though it is still down 8.3% for the week.
Fed Chair’s Remarks Alleviate Rate Concerns
Federal Reserve Chair Kevin Warsh’s recent comments during a discussion with IMF Managing Director Kristalina Georgieva have been interpreted as dovish by the markets. Warsh did not indicate any imminent rate increases, leading to a decrease in the likelihood of a 25-basis-point hike in October, with probabilities falling from 27% to just 15% according to CME Group’s FedWatch Tool.
Economist Robin Brooks noted that the October meeting is likely off the table for any rate hike, suggesting that concerns over stress in the AI sector may have influenced the Fed’s cautious stance.
On the equity front, U.S. stocks experienced a mixed session on Friday. The Nasdaq Composite fell by 0.5%, while the S&P 500 managed a 0.5% uptick. The yield on the 10-year Treasury note reached 5.13% before settling at 5.07%. The Kobeissi Letter highlighted that stock weakness has been the primary driver of bond yield corrections since August, indicating a potential “bull-bear” market.
ETF Flows and Market Sentiment
In terms of ETF activity, U.S. spot Bitcoin ETFs recorded net outflows of $82.39 million on October 16, with BlackRock’s iShares Bitcoin Trust contributing $71.78 million to that total. The flows have been inconsistent, with $65.4 million in outflows on October 12 followed by a significant inflow of $175.7 million on October 13 and then a withdrawal of approximately $261.4 million on October 14.
On the charts, Bitcoin has managed to hold onto the gains it reclaimed after bouncing off the $80,000 level. Analyst Ted Pillows noted that as long as BTC maintains above $80,500, buyers remain in control, and the upside potential remains significant.
The key levels to monitor are $80,500 on the downside and $83,000 as a potential upside target.
Meanwhile, Ethereum investment products also experienced outflows of $69.68 million on October 16. Circle announced about $1.4 billion in revenue for the first half of 2026, with third-quarter earnings set to be reported on November 4.
As traders keep a close eye on ETF demand, they will be watching whether renewed interest can propel Bitcoin towards the $83,000 mark, or if continued withdrawals will exert pressure on the critical $80,000 support level.
