Key Takeaways
- • Bitcoin traded at about $79,900 (roughly €71,300) on Monday, slipping below the $80,000 level, with an intraday low near $79,300 over the weekend, according to Trending Topics.
- • Bitcoin's market capitalization stood at about $1.61 trillion as of Monday afternoon, with the asset down just over 3% on the week while Ethereum fell 4.6%.
- • Markets price only about a 9% chance of a Fed rate hike at Wednesday's meeting per CME FedWatch, but investors are focused on whether Fed Chair Kevin Warsh signals a December hike.
- • U.S. spot Bitcoin ETFs posted a $635.6 million outflow on Thursday and about $138 million more on Friday, including $110 million from BlackRock's IBIT, though they still gained about $301 million for the week per Farside Investors.
- • Ether ETFs recorded outflows for a fourth straight week, totaling about $221 million, while about $154 million in leveraged crypto positions were liquidated over 24 hours.
Summary
Bitcoin fell below the $80,000 mark on Monday, trading at around $79,900 (about €71,300), after briefly sliding to roughly $79,300 over the weekend, according to Trending Topics. Sentiment deteriorated ahead of the Federal Reserve's rate decision on Wednesday. Bitcoin's market capitalization was about $1.61 trillion as of Monday afternoon, per CoinMarketCap. Over the week, Bitcoin lost just over 3%, Ethereum fell 4.6%, and Cardano and Chainlink each declined between 5% and 7%. Only BNB and Zcash were higher over seven days. According to CoinGlass, about $154 million in leveraged positions were liquidated over 24 hours, $118 million of them long positions, a smaller figure than on Saturday when Bitcoin briefly dipped below $80,000.
The Fed meeting is the week's central event. CME FedWatch puts the probability of a rate hike at this meeting at about 9%. Market attention is on how clearly Fed Chair Kevin Warsh signals a hike in December during his news conference. Jeff Mei, chief operating officer of the exchange BTSE, told CoinDesk that investors are already reducing risk, and that elevated oil prices, the escalating U.S.-Iran conflict and inflation could push the Fed toward an aggressive tone. Higher rates would tighten liquidity for crypto and equities.
Equity markets offered no offsetting support. In Asia, the sell-off in A.I. stocks continued, with South Korea's Kospi falling 1% after Goldman Sachs cut its target for the index by 25%. Chip stocks were the biggest losers in Japan, and Chinese A.I. developers also fell sharply. Doubts are growing about whether heavy A.I. investment will pay off, a concern Apollo chief economist Torsten Slok has highlighted. The largest U.S. tech companies report quarterly earnings this week. Brent crude fell about 2% from its six-month high to around $114 a barrel after President Trump said it was "getting to be decision time" on a deal with Iran or a resumption of attacks.
Flows into crypto exchange-traded products weakened at week's end. U.S. spot Bitcoin ETFs saw a $635.6 million outflow on Thursday and a further roughly $138 million outflow on Friday, including $110 million from BlackRock's IBIT, according to Farside Investors. Despite a strong start to the week, the funds still recorded a weekly net gain of about $301 million. Ether ETFs posted outflows for a fourth consecutive week, totaling about $221 million. The Crypto Fear & Greed Index from Alternative.me stood at 50 on Monday, neutral, down from 59 a week earlier and 68 the prior Thursday.
Technically, traders view the $79,000 to $80,000 zone as immediate support. A daily close below it would target $75,000, according to market observers. To regain upward momentum, Bitcoin would need to recover $82,500, the level lost last Thursday, per CoinDesk.
The Fed meeting is the week's central event. CME FedWatch puts the probability of a rate hike at this meeting at about 9%. Market attention is on how clearly Fed Chair Kevin Warsh signals a hike in December during his news conference. Jeff Mei, chief operating officer of the exchange BTSE, told CoinDesk that investors are already reducing risk, and that elevated oil prices, the escalating U.S.-Iran conflict and inflation could push the Fed toward an aggressive tone. Higher rates would tighten liquidity for crypto and equities.
Equity markets offered no offsetting support. In Asia, the sell-off in A.I. stocks continued, with South Korea's Kospi falling 1% after Goldman Sachs cut its target for the index by 25%. Chip stocks were the biggest losers in Japan, and Chinese A.I. developers also fell sharply. Doubts are growing about whether heavy A.I. investment will pay off, a concern Apollo chief economist Torsten Slok has highlighted. The largest U.S. tech companies report quarterly earnings this week. Brent crude fell about 2% from its six-month high to around $114 a barrel after President Trump said it was "getting to be decision time" on a deal with Iran or a resumption of attacks.
Flows into crypto exchange-traded products weakened at week's end. U.S. spot Bitcoin ETFs saw a $635.6 million outflow on Thursday and a further roughly $138 million outflow on Friday, including $110 million from BlackRock's IBIT, according to Farside Investors. Despite a strong start to the week, the funds still recorded a weekly net gain of about $301 million. Ether ETFs posted outflows for a fourth consecutive week, totaling about $221 million. The Crypto Fear & Greed Index from Alternative.me stood at 50 on Monday, neutral, down from 59 a week earlier and 68 the prior Thursday.
Technically, traders view the $79,000 to $80,000 zone as immediate support. A daily close below it would target $75,000, according to market observers. To regain upward momentum, Bitcoin would need to recover $82,500, the level lost last Thursday, per CoinDesk.
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