Strategy Pauses Additions, Ending Five-Week Buying Streak; Bitcoin Falls Below $80,000 as Markets Await Fed Decision

TradingKey - As of the European trading session on October 27, Bitcoin (BTC) fell below the $80,000 mark, with the latest price trading around $79,900. Meanwhile, the world's largest corporate Bitcoin holder, Strategy (MSTR), recently paused its Bitcoin purchases, ending five consecutive weeks of additions.

Bitcoin price daily chart, Source: TradingView

Judging from recent Bitcoin trends, performance has been noticeably weak. On October 26, Bitcoin briefly dropped to $79,368 before recovering above $80,000. Over the past week, it recorded a cumulative decline of about 2%, with $80,000 continuing to serve as the main price battleground for bulls and bears in the short term. Meanwhile, U.S. spot Bitcoin ETFs saw a combined outflow of approximately $774 million over the previous two trading days, which also capped Bitcoin's rebound.

Notably, Strategy's recent pause in Bitcoin purchases has exerted further downward pressure on the market. The company's latest filing with the U.S. Securities and Exchange Commission shows that it did not buy or sell any Bitcoin between October 19 and October 25, ending five consecutive weeks of purchases. Strategy currently holds 848,517 Bitcoins, with a total purchase cost of approximately $64.02 billion and an average cost of roughly $75,446 per coin.

Rather than continuing to increase its Bitcoin position last week, Strategy used approximately $204.9 million in cash to repurchase about 2.07 million STRC preferred shares. In the preceding week, the company had purchased 267 Bitcoins for around $22.1 million. This shift in Strategy's use of funds—from continuous Bitcoin purchases to partial preferred stock repurchases—has drawn market attention to its short-term capital allocation changes.

However, Strategy's single-week pause does not mean the company has changed its long-term Bitcoin reserve strategy. Its holdings currently still exceed 848,000 coins, accounting for over 4% of total Bitcoin supply. Meanwhile, the main macro variable for Bitcoin in the near term remains the Federal Reserve. The market expects the Fed to announce its latest interest rate decision on October 28, with investors focusing closely on its guidance regarding the December policy path.

In the short term, $80,000 remains a crucial price level for Bitcoin. If it can regain and stabilize in the $81,000 to $82,000 range, recent adjustment pressure may ease; if it decisively falls below the $79,000 area again, the market could pull back further toward support near $75,000.