Bitcoin fell below $80,000 amid AI stock sell-offs and ETF outflows; analysts identify $75,000 as critical support.
Macro & Markets ·
Bitcoin traded below $80,000 for the first time in recent days, reaching approximately $79,330 before recovering to $80,264, marking a 2.7% weekly decline. The pullback coincided with a technology stock sell-off and outflows from U.S. spot Bitcoin ETFs, which lost $773 million in net flows across Thursday and Friday combined. HashKey's Tim Sun identified $75,000 as a critical support level should the decline accelerate, attributing the move to broader risk-asset correction and cooling sentiment around artificial intelligence valuations rather than skepticism toward the technology's long-term potential.
Multiple headwinds are converging to sustain pressure on Bitcoin heading into key events. The Federal Reserve's rate decision on Wednesday and the November 3 U.S. midterm elections represent focal points for near-term volatility. Capital.com analyst Daniela Hathorn noted that persistent inflation and elevated Treasury yields have dampened appetite for speculative positions, while a hawkish Fed stance could further strengthen the dollar and weigh on risk assets. Algoz strategy director Stephen Wundke flagged $82,000—the level from which Bitcoin launched rallies in prior months—as necessary to support the bull narrative.
What remains uncertain is whether institutional demand will resurface once macro uncertainty abates. The extent of additional declines depends partly on how the Fed's announcement reshapes rate expectations and whether technology earnings reports rekindle confidence in risk assets. Bitcoin's recovery "may remain fragile" absent stronger institutional participation, according to market participants, though analysts note the long-term bull case remains structurally intact despite current headwinds.