Bitcoin retreated below $80,000 as investors focused on a revival of the artificial-intelligence trade ahead of this week's results from tech giants and the Federal Reserve decision.
The largest digital asset fell as much as 1.4% to under $79,280 on Monday. Smaller tokens including Ether, XRP and Solana also declined. The moves came after investors pulled $772.4 million from US-listed spot Bitcoin exchange-traded funds on Thursday and Friday, a sharp reversal from more than $1 billion of net inflows earlier in the week.
"Bitcoin and AI stocks are likely reacting to different drivers," said Thomas Probst, a research analyst at Kaiko. Forced liquidations of leveraged long positions amplified the move, he said.
Bitcoin remains in the risk-off basket for many systematic funds and algorithmic traders, leaving it vulnerable to deteriorating sentiment, said Pratik Kala, portfolio manager at Apollo Crypto.
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Another major support for the original cryptocurrency has weakened. The largest Bitcoin accumulator, Strategy Inc., paused token purchases for the first time in five weeks. The firm has been one of the biggest buyers this year, buying billions of dollars of the digital asset by raising funds through the sale of common and preferred stock.
Shares of Strategy dropped 4.2%. The stocks of other crypto-related companies also declined, with Coinbase Global Inc. falling 3% and Circle Internet Group Inc. slumping 7%.
The key catalyst this week will likely be the Fed's policy signals, particularly expectations for December. A more dovish outlook, combined with renewed ETF inflows, could help Bitcoin regain momentum. Conversely, expectations of further tightening could limit upside even if equities continue to recover.
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"A recovery in equities could provide some near-term support, as Bitcoin remains sensitive to broader risk appetite," said Lacie Zhang, a research analyst at Bitget Wallet.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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