Bitcoin falls below $80,000 as Fed meeting, AI spending fears and oil prices weigh on crypto markets
Bitcoin prices dipped below $80,000 amid investor caution regarding upcoming Federal Reserve meetings and concerns over the profitability of heavy AI infrastructure spending. The broader cryptocurrency market followed the downward trend as ETF outflows increased.
Why it matters
The correlation between AI investment skepticism and crypto market volatility highlights how macroeconomic factors and tech sector sentiment influence digital assets.
Bitcoin fell below the $80,000 mark on Monday as investors became more cautious ahead of a key Federal Reserve meeting. Concerns over heavy spending on artificial intelligence (AI), rising oil prices and uncertainty in global markets also put pressure on cryptocurrencies.Bitcoin, the world's largest cryptocurrency, fell as much as 1.4% to below $79,300 before recovering some of its losses. It later traded around $80,000 during afternoon trading in Asia, according to Bloomberg.Bitcoin price today and ETF outflowsBitcoin was down 0.4% at $80,227.70 by 1:52 am Eastern Time (5:52 am GMT) on Monday. The cryptocurrency had lost around $2,000 over the weekend as investor confidence remained weak. The decline in Bitcoin spread to the wider cryptocurrency market, with most major digital tokens trading lower on Monday. Ether, XRP, Solana and other altcoins also recorded losses.US-listed spot Bitcoin exchange-traded funds (ETFs) saw $772.4 million in withdrawals on Thursday and Friday.
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