Bitcoin dropped below $80,000 on Monday, extending a selloff tied to broader market uncertainty and growing concerns over the artificial intelligence sector. The largest cryptocurrency fell as much as 1.4% to under $79,300 before recovering slightly to trade around $80,000 in afternoon trading in Asia. Smaller tokens like Ether, XRP, and Solana also declined.
The downturn followed significant outflows from US-listed spot Bitcoin exchange-traded funds. Investors pulled $772.4 million from these funds on Thursday and Friday, reversing earlier inflows of more than $1 billion earlier in the week.
The market's risk-off sentiment comes ahead of a Federal Reserve meeting, adding to the pressure on cryptocurrencies. The AI trade's recent struggles have further weighed on investor confidence, contributing to the broader selloff.