Bitcoin has fallen below $82,000 for the first time since 20 September, extending a sharp pullback that has erased roughly 5 per cent from the cryptocurrency’s value since Sunday’s highs near $87,000.
At the time of writing, Bitcoin was changing hands at around $82,606 — down approximately 1 per cent over the past 24 hours — as a hawkish message from the US Federal Reserve sent shockwaves through global risk assets.
Waller warns of further rate hikes
The sell-off gathered pace after Federal Reserve Governor Christopher Waller told markets that the central bank still had around 75 basis points of interest rate increases in its sights, adding that the hikes did not need to arrive in consecutive moves.
Waller’s remarks were widely interpreted as a sign that US borrowing costs could climb further and remain elevated for longer than investors had hoped. Higher-for-longer interest rates typically reduce the appeal of speculative assets such as Bitcoin, which offer no yield and tend to thrive when monetary policy is loose.
Equities and bonds feel the strain
The crypto market was not alone in its slide. The tech-heavy Nasdaq Composite fell 0.5 per cent, while the broader S&P 500 declined 0.25 per cent, as surging bond yields weighed on sentiment.
The yield on the 10-year US Treasury — a key benchmark for global borrowing costs — briefly touched 5.36 per cent before easing back to around 5.276 per cent. Rising yields make holding non-yielding assets such as Bitcoin comparatively less attractive, and the move in Treasuries underscored just how seriously markets are taking Waller’s warning.
Technical outlook: bearish momentum builds
From a technical perspective, the picture has turned decisively bearish across shorter timeframes. The Relative Strength Index (RSI), a widely watched momentum indicator, is signalling selling pressure on the 15-minute, 1-hour and 4-hour charts.
On the daily timeframe, the RSI stands at 49.7 — neutral territory, but drifting lower. That leaves room for further downside before Bitcoin reaches oversold conditions that might attract bargain hunters.
On the downside, the $82,600–$82,900 region represents the first meaningful support zone. A clean break beneath it would likely expose the psychologically important $80,000 level, where stronger buying interest may finally emerge. To the upside, resistance is stacked at $86,000–$86,700, with a further barrier at $87,000–$87,400 — the zone from which the latest leg lower began.
What UK investors should watch
For UK investors, the prudent approach may be to avoid chasing the decline. A decisive daily close back above $84,000 would be the first signal that buyers are regaining control, while a capitulation washout towards $80,000 could offer a more attractive entry for those with a longer time horizon.
Sterling-based investors should also keep an eye on the pound, as moves in GBP/USD can amplify or dampen Bitcoin’s dollar-denominated swings when translated back into pounds.
All eyes on CPI and Fed speakers
Looking ahead, attention turns to the upcoming US consumer price index (CPI) data and a busy calendar of Federal Reserve speakers. A hotter-than-expected inflation print could reinforce Waller’s hawkish stance and pile further pressure on Bitcoin, while softer data might offer the market some relief.
Either way, volatility is likely to remain elevated. With Bitcoin clinging to support and macro headwinds strengthening, the coming days could prove decisive for the direction of the autumn rally.
