[Analysis] Bitcoin Falls Below $80,000 as Risk-Off Sentiment Weighs on Crypto
Summary
- Bitcoin fell below $80,000, and major digital assets were also trading lower.
- It said weakening investor sentiment across risk assets, led by AI-related technology stocks, was a key reason for the weakness in digital-asset markets.
- She said market attention is shifting to the U.S. Federal Reserve monetary policy meeting and the U.S. midterm elections.
Forecast Trend Report by Period
Bitcoin fell below $80,000 as weakening risk appetite across markets, including AI-related stocks, was cited as a main driver of the decline.
As of 5:30 p.m. on October 26, Bitcoin was trading at $79,798, down 0.37% from a day earlier, according to CoinMarketCap. Major digital assets including Ether, XRP and Solana were also trading lower.
Bloomberg said the selloff centered on AI-related technology stocks was also affecting digital-asset markets.
"Many systematic funds and algorithmic traders still classify Bitcoin as a risk asset," said Pratik Kala, a portfolio manager at Apollo Crypto. "When investor sentiment deteriorates, Bitcoin can also come under selling pressure."
"Bitcoin has so far held up relatively well against AI-related debt concerns that have weighed on other risk assets," Caroline Mauron, co-founder of Orbit Markets, said. She added that market attention is now shifting to the Federal Reserve's monetary policy meeting and the U.S. midterm elections that follow.
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