Cryptocurrency prices declined during trading on Monday, with Bitcoin falling below $80,000, as investors reduced their exposure to high-risk assets ahead of this week's US Federal Reserve meeting, amid concerns about massive spending on artificial intelligence and its potential impact on markets.
Investors withdrew $772.4 million from U.S. Bitcoin exchange-traded funds (ETFs) on Thursday and Friday, a reversal from net inflows of more than $1 billion earlier in the week, according to Bloomberg.
These moves came in conjunction with a broader decline in financial markets, amid growing investor questions about the expected returns from massive investments in artificial intelligence, as well as anticipation of the results of major technology companies this week, which may provide new indications of these companies’ ability to convert their increased spending into revenue and profit growth.
Markets are awaiting the US Federal Reserve meeting this week for clues about the direction of monetary policy and interest rates, as interest rate expectations influence investor appetite for high-risk assets, including cryptocurrencies. Uncertainty surrounding central bank decisions and market volatility could increase pressure on these assets in the short term.
In trading, Bitcoin fell 0.65% to $79,933.25, a loss of $522.25. Ethereum also declined, dropping 1.46% to $2,314.53, a decrease of $34.22, while Ripple slipped 1.02% to $1.2854, a loss of $0.0132.
