On the Chain: Bitcoin breaks below US$80,000 as Fed pause fails to revive crypto

Bitcoin has fallen below US$80,000 as the cryptocurrency market gives back its brief post-Federal Reserve rally, with elevated bond yields, rising oil prices and continued caution towards risk assets weighing on sentiment.

The world's largest cryptocurrency was trading around US$79,900 at the latest check, down about 1.2% on the session after falling as low as US$79,644.

Bitcoin reached an intraday high of US$81,674 but failed to hold those gains, pushing the cryptocurrency back through the psychologically important US$80,000 level.

The decline leaves Bitcoin around 5% lower over the past week and on course for another disappointing October after the traditional "Uptober" rally failed to materialise.

Fed hold provides little relief

The Federal Reserve left US interest rates unchanged at 3.75%-4.00% overnight, as widely expected.

However, the decision offered limited support to cryptocurrency markets because policymakers continued to warn that inflation remains elevated.

The vote was 10-2, with two officials favouring another 25-basis-point increase, reinforcing expectations that further tightening remains possible.

US Treasury yields also moved higher following the decision, with the 10-year yield remaining above 5%.