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Bitcoin slipped below USD 80,000 as investors reassessed technology valuations, artificial intelligence (AI) spending and the Federal Reserve's upcoming policy decision. The decline coincided with withdrawals from US Bitcoin exchange-traded funds, showing how market confidence can affect digital assets.
Bitcoin dropped as much as 1.4% on Monday, October 26, reaching below USD 79,290 before recovering toward USD 80,000 during Asian trading. Ethereum, XRP and Solana also declined, indicating broader cryptocurrency weakness.
The decline followed USD 772.4 million in net withdrawals from US-listed spot Bitcoin ETFs on Thursday and Friday. Earlier in the week, those funds had attracted more than USD 1 billion, marking a sharp reversal.
"Bitcoin and AI stocks are likely reacting to different drivers," said Thomas Probst, a research analyst at Kaiko. He added that forced liquidations of leveraged long positions intensified Bitcoin's decline.
Investors are scrutinizing the scale of artificial intelligence infrastructure spending ahead of earnings from major technology companies. Questions about financing requirements and potential returns have pressured technology shares, contributing to caution across risk-sensitive markets.
South Korea's Kospi index fell 0.2%, while semiconductor-related stocks weakened in Japan. These moves reflected nervousness around the AI trade, without proving that technology selling caused Bitcoin's losses.
"Bitcoin has so far been relatively resilient to the AI debt concerns that are weighing on all risk assets," said Caroline Mauron, co-founder of Orbit Markets. She identified the Fed meeting and US midterm elections as upcoming market focal points.
Another source of demand temporarily disappeared when Strategy Inc. paused Bitcoin purchases for the first time in five weeks. The company has funded purchases through common and preferred share offerings.
Strategy shares fell 4.2%, while Coinbase Global declined 3% and Circle Internet Group lost 7%, extending pressure to listed cryptocurrency businesses.
According to Pratik Kala, portfolio manager at Apollo Crypto, systematic funds and algorithmic traders continue treating Bitcoin as a risk-off asset, exposing it to deteriorating investor sentiment.
The Fed's policy guidance, especially expectations for December, may influence Bitcoin's next move. A more accommodative outlook alongside renewed ETF inflows could support prices, while tighter expectations could restrict gains.
"A recovery in equities could provide some near-term support, as Bitcoin remains sensitive to broader risk appetite," said Lacie Zhang, a research analyst at Bitget Wallet.
Bitcoin's decline reflects overlapping pressures from ETF outflows, leveraged liquidations and uncertainty surrounding AI investments. Upcoming monetary policy signals and major technology company earnings may determine whether investor confidence improves or selling continues.
Also Read: Why Bitcoin and Altcoins May Fall Together During Market Stress
1. Why did Bitcoin fall below USD 80,000 in October 2026?
Bitcoin declined as investors reduced exposure to risk-sensitive assets amid concerns about artificial intelligence spending and uncertainty surrounding the Federal Reserve's upcoming policy decision. Spot Bitcoin ETF outflows and forced liquidations of leveraged positions also contributed to the downward pressure.
2. How is the AI stock sell-off affecting Bitcoin prices?
Concerns about the profitability and financing requirements of major AI investments have weakened investor confidence in technology stocks and other risk-sensitive assets. Although Bitcoin and AI stocks respond to different market drivers, deteriorating sentiment can encourage investors to reduce cryptocurrency exposure.
3. How much money flowed out of spot Bitcoin ETFs during the decline?
US-listed spot Bitcoin exchange-traded funds recorded approximately USD 772.4 million in net outflows on Thursday and Friday. The withdrawals reversed the earlier trend, when these funds attracted more than USD 1 billion in net inflows during the same week.
4. How did the Bitcoin decline affect cryptocurrency-related stocks?
Strategy shares dropped 4.2% after the company paused Bitcoin purchases for the first time in five weeks. Coinbase Global declined 3%, while Circle Internet Group fell 7%, reflecting broader weakness among publicly traded cryptocurrency businesses.
5. Can Bitcoin recover after the AI-related market sell-off?
Bitcoin could regain momentum if investor confidence improves, spot Bitcoin ETF inflows resume and the Federal Reserve signals a more accommodative monetary policy outlook. However, continued technology-sector volatility, tighter interest-rate expectations and leveraged liquidations could limit any potential recovery.
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