Bitcoin slips below $80,000 amid AI-driven market pullback and Fed jitters
Bitcoin fell under $80,000 on Monday as risk-off sentiment tied to AI spending and an upcoming Federal Reserve meeting pressured crypto markets.
On Monday, Bitcoin slipped below the $80,000 threshold, touching just under $79,300 before modestly rebounding in Asian markets. The move coincided with investors withdrawing $772.4 million from US-listed spot Bitcoin exchange-traded funds, reversing earlier weekly inflows. Analysts noted that broader risk-off sentiment was driven by worries over massive AI spending and anticipation of the Federal Reserve’s policy meeting, as well as upcoming U.S. midterm elections.
Smaller cryptocurrencies, including Ether, XRP and Solana, also posted losses. Asian equity benchmarks such as South Korea’s Kospi and Japan’s one outlet fell modestly, reflecting the AI-related market strain. Commentators linked the crypto dip to heightened concerns about AI-related security risks and speculative comments from figures like Elon Musk.
Why it matters
The dip shows how AI hype and monetary policy expectations can quickly sway major crypto prices.
How this story developed
- Oct 15 CoreWeave stock and bonds tumble as AI borrowing concerns intensify
- Oct 18 CoreWeave’s bond yields rose above 16 % and default‑insurance costs jumped to about 1,000 basis points.
- Oct 20 AI-focused shares fell after a brief rebound, while oil prices rose on Middle-East tensions and investors await upcoming earnings reports.
- Oct 22 AI funding concerns and higher oil prices have pushed U.S. markets lower since the earlier rally.
- Oct 24 Oil prices climbed to a five‑month high above $115 a barrel, intensifying pressure on equities.
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