Cryptocurrency markets faced a sharp downturn on Monday, with Bitcoin (BTC) dropping to $79,979 on Binance, a 6% decline from last Wednesday's high of $84,898. Ether, XRP, and Dogecoin all hit their lowest prices since August, as the selloff extended into a fourth day. The decline began on Thursday, driven by concerns over funding for artificial intelligence spending, which hit technology stocks and dragged down the Nasdaq Composite by 2.6%.
The selloff was amplified by significant outflows from spot Bitcoin exchange-traded funds (ETFs) in the US, which lost $635.6 million on Thursday and another $137.9 million on Friday. Leverage also played a role, with $440.9 million in crypto liquidations over 24 hours by Thursday evening, mostly long positions. Rising oil prices, with Brent crude jumping 4% to $113.17 a barrel, added to inflation worries ahead of the Federal Reserve's decision this week.
Bitcoin broke key support levels, including $81,355 and the 50-day exponential moving average near $80,793, falling back into its August-September range. Analysts expect further declines if the $80,000 level gives way, with potential targets around $75,055. Ether also broke October support near $2,393 and is testing its 200-day EMA near $2,318, with a daily close below potentially sending it toward $2,000. XRP remains on support between $1.28 and $1.32 but is in a downtrend, while Dogecoin has broken support at $0.080 and is heading toward its 2026 low near $0.0684.
Not all analysts predict a deeper slide. Paul Howard of Wincent sees Bitcoin range-bound between $80,000 and $85,000 until the US midterm elections. Lorris Beziers of Tesseract Group suggests the move reflects equity risk spilling into Bitcoin rather than a crypto-specific shock. The Fed's decision on Wednesday, along with inflation data and Bitcoin options expiring on Friday, will be key factors in determining the market's next move.