Bitcoin Falls Below $80,000 Before Federal Reserve Decision and Midterm Elections

WHY IT MATTERS

Bitcoin's price does not move in isolation. Like stocks and other investments, it can be affected by big economic and political events. The Federal Reserve is the central bank of the United States, and when it makes decisions about interest rates — essentially the cost of borrowing money — it can influence how willing people are to invest in riskier assets like cryptocurrency. Think of it like a thermostat for the economy: when rates go up, borrowing gets more expensive and people may pull back from speculative investments. Midterm elections, which happen halfway through a U.S. president's term, can also create uncertainty because new lawmakers may push for different rules around finance and crypto. When investors are unsure about what is coming, they sometimes sell assets, which can push prices down.