Bitcoin slipped below $80,000 on Monday, October 26, dipping as low as about $79,290 before recovering toward $80,000 [2]. Ether and XRP fell the same day, with ether at about $2,314 and XRP at $1.29 [1]. The slide has several causes at once: worry about AI spending spreading from technology stocks into crypto, a Federal Reserve decision on October 28, and forced selling of leveraged long positions [2]. This picks up from the early-October move covered in our October 14 piece.
Where prices stand
| Asset | Level cited | Move | Context |
|---|---|---|---|
| Bitcoin | $79,817 | −2.4% | Seven-day change, Oct. 26 [1] |
| Ether | $2,313.61 | −3.5% | Seven-day change, Oct. 26 [1] |
| XRP | $1.29 | −0.6% | Seven-day change, CoinGecko data cited Oct. 26 [1] |
| Spot ETFs | IBIT −1.61% | FBTC −1.66%, ETHA −3.22% | Price moves for the three ETFs on Oct. 26 [1] |
Each figure is as reported by the source at its publication time. They are not a single official close.
The AI spending worry
The most unusual driver is the link to AI. Investors have grown concerned about AI infrastructure spending, how it is financed, and whether it will earn a return, especially ahead of major technology earnings. Those concerns pressured technology shares, and the same nervousness showed up in crypto-linked equities: Strategy shares fell 4.2%, Coinbase Global declined 3% and Circle Internet Group lost 7% [2].
The analysts disagree on how tight that link is. Thomas Probst of Kaiko said "Bitcoin and AI stocks are likely reacting to different drivers." Caroline Mauron of Orbit Markets said "Bitcoin has so far been relatively resilient to the AI debt concerns that are weighing on all risk assets" [2]. In other words, the correlation is real in the sell-off, but it is not yet proven as the cause.
Flows and forced selling
Spot bitcoin ETFs took in more than $1 billion in an earlier week, then saw $772.4 million of net withdrawals on October 22 and 23 [2]. Strategy, which has funded its bitcoin purchases through share offerings, paused buying for the first time in five weeks [2]. Analysts also cite forced liquidation of leveraged long positions as a driver of the decline [2].
Pratik Kala of Apollo Crypto made the structural point: systematic funds and algorithmic traders still treat bitcoin as a risk-off asset, which exposes it to any worsening of sentiment [2]. When one part of the market turns down, those strategies can sell into the move.
The Fed, inflation and energy
The macro backdrop got harder in October. September consumer prices rose 3.7% from a year earlier, after 3.4% in August. Core inflation, which strips out food and energy, rose 2.6% from a year earlier against expectations of 2.5% [3]. Energy accounted for about half of the monthly increase, with gasoline up 9.1% [3]. A core reading above forecast pushes expectations away from rate cuts, which is a headwind for bitcoin.
The Federal Reserve decides on October 28. Markets priced only an 8% chance of a hike at that meeting, so the risk is less about an immediate move and more about how the Fed signals its path from here [1].
Profit-taking after a strong summer
Several cryptocurrencies had double-digit rebounds from their summer lows after a strong third quarter. Some of the recent selling looks like traders locking in those gains, and some of it looks like a general drop in appetite for risk [1]. The two readings point to different outcomes, which is why the next few data points matter.
What would change the picture
- A Fed decision that does not tighten further. The market already expects no hike, so the reaction depends on the tone of the statement.
- AI earnings that ease the debt worry. Strong results and clearer spending plans would take the pressure off the AI trade and, by extension, crypto-linked equities.
- ETF flows that turn positive. Spot bitcoin ETFs posted $175.6 million of net inflows on October 13, a sign that buyers can return quickly [3].
- Bitcoin holding $79,000 to $80,000. A clear break below that band would open the door to further liquidations.
What we are watching
- October 28: the Fed decision and the statement that follows it.
- Big-tech earnings: whether AI spending plans reassure investors.
- ETF flows: whether the October 22–23 outflows continue.
- Strategy's buying: whether the paused purchases resume.
We'll update this piece after the Fed decision.
Matt Buck is Head of Financial Analytics at BWD Financial Holdings. He brings 20 years of leadership across the gaming and financial industries, spanning market insights, product development and program management. At BWD, he researches emerging and developing markets and executes investment strategies focused on digital growth.
Sources
- Crypto Market Today, Oct. 26: Bitcoin Slips Below $80,000 as Fed Decision Looms, Motley Fool, Oct 26, 2026 (CoinGecko data)
- Bitcoin Price Decline: How the AI Sell-Off Is Affecting Crypto, Analytics Insight, Oct 27, 2026
- Why Bitcoin and Ether Are Falling: The Crypto Selloff, CryptoTicker, Oct 14, 2026 (BLS CPI release)
This article is for informational purposes only and is not investment, financial, legal or tax advice. Figures are as reported by the sources above and may change. Crypto prices and regulatory timelines move quickly. BWD Financial Holdings may hold positions in digital assets or securities discussed on this site.