The Federal Reserve kept its policy rate at 3.75–4% on October 28, 2026, by a 10–2 vote, with Lisa Cook and Beth Hammack preferring a quarter-point hike. During the Asian session the next day Bitcoin dropped from above $81,700 to about $79,800, which CoinDesk linked to the hawkish tone and weak tech stocks. This happened before the Binance hot wallet news later on October 29.
What the Fed decided
According to the FOMC statement, the Committee left the target range unchanged and noted that inflation remains elevated. The range was last raised on September 16, 2026. The Board also kept the interest rate on reserve balances at 3.90%, effective October 29, according to the implementation note.
| Item | October 28, 2026 |
|---|---|
| Federal funds target range | 3.75–4.00%, unchanged |
| Vote | 10–2 |
| Dissents | Lisa D. Cook and Beth M. Hammack, for a 0.25-point hike |
| Interest on reserve balances | 3.90% |
| Previous change | Hike on September 16, 2026 |
Chair Kevin Warsh said progress on inflation was being made but that "price pressures remain too high," as quoted by CoinDesk. The full text is in the statement PDF.
How the crypto market reacted
CoinDesk reported that Bitcoin fell below $80,000 in Asian trading on October 29, with $356 million of futures liquidated over 24 hours, $205 million of it longs. KuCoin's daily report had Bitcoin around $81,340 at 00:00 UTC that day, so the drop came within hours. CoinDesk also pointed to Samsung's chip division missing expectations as a drag on risk assets.
The evening drop on the same day was a separate event that followed reports of outflows from Binance hot wallets. We cover it in BNB and market moves on October 29.
What it means for transfers and swaps
- Network fees and confirmation rules do not depend on Fed decisions; only prices and volatility move.
- On volatile days the amount you receive in a swap can shift between quote and execution; check the rate right before you send.
- If you convert to a stablecoin to step aside from volatility, remember that stablecoins carry issuer risk too.
You can check a live conversion with our crypto converter and swap without an account, for example BTC to USDT or back with USDT to BTC. We do not give price forecasts.
FAQ
Did the Fed raise rates in October 2026?
No. On October 28 the Fed held the range at 3.75–4%. Two members voted for a quarter-point hike.
Why did Bitcoin drop below $80,000 on October 29?
CoinDesk linked the morning drop to the Fed's hawkish hold and weakness in tech stocks. A second drop that evening followed the Binance news.
Do Fed decisions affect crypto transfer fees?
No. Fees depend on network load and the chosen network, not on interest rates.
Related on KOT.CASH
Sources
- www.federalreserve.gov/newsevents/pressreleases/monetary20261028a.htm
- www.federalreserve.gov/monetarypolicy/files/monetary20261028a1.pdf
- www.coindesk.com/markets/2026/10/29/bitcoin-dips-below-usd80-000-as-samsung-led-risk-aversion-in-tech-and-a-hawkish-fed-weigh-on-crypto
- www.kucoin.com/news/articles/crypto-daily-market-report-october-29-2026