Bitcoin Drops Near 8-Month Low Amid Economic Pressures and AI Bubble Fears

Bitcoin's price has declined to around $85,000, approaching its lowest levels in nearly eight months, amid rising macroeconomic pressures that have negatively impacted risk appetite in global markets. This decline represents a loss of over 30% from its all-time high recorded last October, according to market analysis. The weak performance comes at a time of increasing uncertainty regarding the future path of the U.S. Federal Reserve's monetary policy next year. Analysts pointed out that growing concerns about the sustainability of the AI investment wave have contributed to a broad sell-off affecting high-risk assets, including cryptocurrencies, as growth and risk expectations are being repriced in the markets. Additionally, sentiment has been further pressured by declining expectations for the appointment of Kevin Hassett, seen as a more dovish candidate, to succeed Federal Reserve Chair Jerome Powell, amid reports that advisors to President Donald Trump prefer candidates viewed as more independent in monetary policy management. In trading, the liquidation of leveraged long positions has accelerated the decline, increasing selling pressure on Bitcoin's price in recent sessions.