[Analysis] Bitcoin Falls Below $80,000 as Risk-Off Sentiment Weighs on Markets
Summary
- Bitcoin fell below $80,000, with weakening investor sentiment across risk assets cited as a main reason for the decline.
- According to CoinMarketCap, Bitcoin was trading at $79,798, down 0.37% from a day earlier, while Ether (ETH), XRP and Solana (SOL) were also weaker.
- Pratik Kala and Caroline Mauron said Bitcoin is classified as a risk asset, leaving it exposed to selling pressure when investor sentiment worsens, while market attention is shifting to the U.S. Federal Reserve policy meeting and the U.S. midterm elections.
Bitcoin fell below $80,000, with weakening sentiment across risk assets, including artificial intelligence-related stocks, 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 weaker.
Bloomberg reported that a selloff centered on AI-related technology stocks was spilling over into the digital-asset market.
“Many systematic funds and algorithmic traders still classify Bitcoin as a risk asset,” Pratik Kala, a portfolio manager at Apollo Crypto, said. Bitcoin can also come under selling pressure when investor sentiment deteriorates.
Caroline Mauron, co-founder of Orbit Markets, said Bitcoin had so far held up relatively well against debt concerns tied to AI that have weighed on other risk assets. Market attention is now shifting to the Federal Reserve’s monetary policy meeting and the U.S. midterm elections that follow.
Uk Jin
wook9629@bloomingbit.ioH3LLO, World! I am Uk Jin.