Bitcoin fell below $82,000 on Thursday as renewed concerns about artificial intelligence spending triggered losses across global equities and cryptocurrency markets. BTC dropped as much as 2.9% to around $81,600, while the CoinDesk 80 index declined 3.5% and DeFi tokens recorded even steeper losses.

Bitcoin (BTC) experienced its sharpest pullback in two weeks after mixed earnings from Tesla and Meta Platforms reignited concerns about the cost and profitability of AI investments. The uncertainty dragged down Asian stocks and weakened appetite for riskier assets.

China’s CSI 300 fell 2%, extending its decline from the June peak to 20% and placing the benchmark in bear-market territory. Hong Kong’s Hang Seng Index lost more than 3%, South Korea’s Kospi dropped 3.5%, and Japan’s Nikkei 225 slipped 2.7%. U.S. futures also traded lower, with Nasdaq 100 contracts falling 1.32% and S&P 500 futures declining 0.66%.

The altcoin market suffered larger losses than Bitcoin. The CoinDesk 80 (CD80) dropped 3.2%, while the CoinDesk 5 (CD5) lost 2.5%. Ether (ETH) declined 2.6% to roughly $2,400, and the decentralized finance sector index (DFX) slid 5.6%.

The downturn came despite strong institutional demand earlier in the week. SoSoValue data showed that U.S. spot Bitcoin ETFs received more than $1 billion in net inflows over the first three trading days. Solana’s Alpenglow upgrade also went live overnight, although SOL fell 2.4% to approximately $104. Investors were also watching for the latest U.S. jobless claims figures.

Derivatives Data Points to Position Closures

Crypto derivatives trading volume rose 19% to $226.6 billion, while open interest fell 2.46% to $141.8 billion. Liquidations increased 52% to $431.1 million, suggesting that traders were closing positions amid the sell-off instead of substantially increasing their exposure. Long and short liquidations were relatively evenly distributed.

Bitcoin futures volume jumped 36%, while Ether futures activity increased 27%. However, open interest declined broadly alongside prices, indicating that falling asset values accounted for much of the reduction in dollar-denominated open interest. Funding rates remained slightly positive, pointing to a relatively balanced market without a heavily crowded bullish or bearish position.

Several altcoins experienced sharper declines in open interest. Zcash (ZEC) open interest dropped 6.99% as its price fell 2.34%. Near Protocol (NEAR) recorded an 8.83% decrease, while Uniswap (UNI) saw open interest fall 10.17%. Chainlink (LINK) and Sui (SUI) also showed signs of traders reducing their positions.

Commodity Contracts Attract Additional Exposure

Commodity derivatives gained interest as open positions in crypto markets declined. Gold futures open interest climbed 12% despite lower prices, while tokenized gold Tether Gold (XAUT) and silver contracts registered increases of 10% and 6.8%, respectively.

Higher open interest during a price decline can suggest that traders are opening short positions, though it may also indicate that investors are buying the dip. Crude oil futures open interest rose 6.29%, while funding turned negative at -0.0126%, indicating that short sellers were paying to maintain their positions.

Order-flow indicators also showed a change in market direction. Buying orders had dominated most tokens roughly 24 hours earlier, but selling activity became more pronounced by Thursday morning across major assets, including BTC and ETH.

Monero Funding Rate Highlights Leverage Risk

Monero (XMR) diverged from the broader market, with its funding rate reaching approximately 70% on an annualized basis. This unusually high level indicates that leveraged long traders were paying a substantial premium to hold their positions, increasing the potential for liquidations if prices reverse.

Monero futures open interest also exceeded $300 million during the week, approaching the record level recorded in January, according to SoSoValue data.

Meanwhile, Bitcoin’s BVIV and Ether’s EVIV implied-volatility gauges remained close to their 2026 lows. The readings suggest that options traders were not paying much for protection against major price swings.

On Deribit, Bitcoin call options with strike prices of $85,000 and $86,000 expiring on Oct. 30 ranked among the most actively traded contracts over the previous 24 hours. Yet short-dated options skews continued to favor puts, indicating that downside protection remained more expensive than comparable bullish bets. Ether options displayed a similar pattern.

DeFi Tokens Record the Heaviest Losses

Privacy coins delivered mixed results during the downturn. Monero gained 4.9% to approximately $651, making it one of only five CoinDesk 100 (CD100) constituents to rise since midnight UTC. Zcash fell 4.8% to around $1,252.

Monero has climbed roughly 19% over the past month, and its futures open interest surpassed $300 million this week.

DeFi tokens were among the worst performers. Curve (CRV) plunged 8.2% to approximately $0.37, although it remained up around 4% for the week. Ethena (ENA) dropped 7.2%, extending its decline to roughly 25% from its late-September high.

Uniswap (UNI) lost 5%, leaving it down about 20% in October despite recording its highest-ever fee revenue in September, according to Token Terminal.

Other altcoins also declined. Celestia (TIA) shed 3.7%, taking its weekly losses to around 9% and reducing its monthly gain to approximately 31%. A token unlock involving 5.58 million TIA is scheduled for Oct. 31. LayerZero (ZRO) fell 4.2%, while Worldcoin (WLD), a token associated with iris-scanning identity technology, declined 7.3%.

The Sandbox (SAND) lost 5.1%, and Starknet (STRK) dropped 6.1%. SAND had previously risen after South Korean exchanges Upbit, Bithumb and Coinone lifted trading cautions. STRK had gained after its network disclosed that it was exploring a quantum-resistant Layer 1 approach.

Pump.fun (PUMP), the token tied to Solana’s memecoin launchpad, declined 6% and remained approximately 19% lower for the month.

The latest decline reflects renewed uncertainty over AI investment and weakening global risk appetite. Although Bitcoin ETFs attracted substantial inflows earlier in the week, falling open interest and heavy losses among DeFi assets suggest traders are becoming more cautious across the crypto market.