Bitcoin (BTC) Grinds Lower As Market Selloff Worsens

Bitcoin (BTC) slide lower on Oct. 23 as the selloff in stocks worsened and spread to most sectors of the market. BTC was down 0.30% at $81,250 at the end of the trading session for equity markets. The largest cryptocurrency by market capitalization is now down 5% in October as volatility intensifies and investors head for the safety of government Treasury bonds.

The drop in Bitcoin on Oct. 23 comes on a day when the blue-chip Dow Jones Industrial Average closed 652 points lower and a day after the technology-laden Nasdaq Composite dropped nearly 700 points or 2.60% on Oct. 22. A growing number of issues are impacting risk assets such as technology stocks and cryptocurrencies, including worries about the artificial intelligence (AI) trade, oil prices, and bond yields.

A technical analysis of Bitcoin. Source: TipRanks

So Much for ‘Uptober’

The decline in recent weeks comes after Bitcoin’s price rose more than 40% in the third quarter of the year and rallied as high as $86,000. The current slump is somewhat surprising as October is typically the best month of the year for cryptocurrencies. Bitcoin hit a record high of $126,000 in October 2025. The month is normally so strong, that many investors refer to it as “Uptober.”

Many analysts expect digital assets to remain under pressure in coming weeks as the market continues to assess the risks of an AI bubble, as well as government bond yields and crude oil prices. Oil prices have risen sharply in recent days as tensions in the Middle East worsen, with Brent crude, the international standard, now trading above $115 per barrel and near its high for the year.

The AI Trade Unwinds

At the same time, crypto is being hurt as the AI trade quickly unwinds. The steep drop in technology stocks is pressuring other risk assets such as crypto, with Bitcoin’s price falling steadily over the past week to $81,500. Unlike stocks, cryptocurrencies trade around the clock: 24 hours a day, seven days per week.

Technology stocks have been sinking over concerns of a bubble forming in companies associated with the AI infrastructure buildout. Investors are increasingly worried about the billions of dollars being spent on AI data centers, microchips, and other technologies. There are concerns the excessive spending might not be sustainable over the long run.

BTC Price Action

Below is a chart that looks at the price movements of Bitcoin over the last three months. As one can see, the price of BTC has gained 25% in the past 12 weeks.