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Bitcoin Falls Below $80,000, Gold Under $4,000 on Forced Selling
Why did Bitcoin fall below $80,000?
Bitcoin (BTC) fell to $79,330 on Monday and gold (XAU) slipped under $4,000, down 4.1% on the week, as forced selling after the AI-stock selloff hit past winners ahead of the Fed decision.
Key numbers
| Bitcoin intraday low (26 Oct) | $79,330-1.0% in 24h |
|---|---|
| Spot gold (27 Oct) | $3,996-0.52% on the day |
| Gold weekly move | -4.1%Worst week since June |
| US spot bitcoin ETF outflows (22-23 Oct) | $773.5MTwo sessions |
| Chip index drop on 22 Oct (per [2]) | -6.7%Philadelphia Semiconductor Index |
| Fed hold odds for 28 Oct | 90.6%Rates at 3.75%-4.00% |
What happened
Bitcoin (BTC) fell to $79,330 on Monday and gold (XAU) slipped under $4,000, down 4.1% on the week, as forced selling after the AI-stock selloff hit past winners ahead of the Fed decision. It started on 22 October, when worries about Meta's huge AI spending sent chip stocks down 6.7% in one day (per). Investors who had to cover losses sold what was easy to sell, including gold and bitcoin. Prices steadied by Wednesday, with bitcoin near $80,650 and gold futures near $4,060.
Why it matters
Bitcoin and gold are often held as a cushion when stocks fall, yet both dropped alongside AI stocks this week. Both are now lower for 2026, bitcoin by 8.9% and gold by 7.6%, while US stocks are up about 11%. The US central bank (the Fed) announces its interest-rate decision today at 2 p.m. ET, and traders give a 90.6% chance it holds rates. Higher rates for longer can weigh on both assets.
Who this affects
- MarketmixedMedium impact
- Bitcoin and gold holders saw losses before prices steadied.
- CompanybearishMedium impact
- Bitcoin fund investors faced $773.5M of outflows in two days.
- CompetitorsmixedLow impact
- Stocks rebounded Tuesday and lead bitcoin and gold this year.
- IndustrybearishMedium impact
- Rate-hike bets keep pressure on gold and crypto markets.
Bitcoin vs Gold, Nasdaq Composite, S&P 500
How we got here
Meta spending worries spark AI-stock selloff; chip index drops 6.7% (per).
Bitcoin dips to $79,330 and gold trades near $3,995, lowest since July.
Gold rebounds above $4,050 as oil eases and Nasdaq gains 1.2%.
Bitcoin recovers to about $80,650 ahead of the Fed decision.
What to watch
- Fed decision and Chair Warsh's press conference for hints of a December rate hike.2026-10-28
- December hike odds, near 73% to 79% depending on the source.Q4 2026
- Brent crude above $110 amid Middle East attacks keeps inflation worries alive.Q4 2026
Educational content only. Not investment advice.
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