- Bitcoin fell below $81,000 while Ether dropped under $2,400 on October 22.
- Analyst Ash Crypto estimated crypto market losses at about $120 billion.
- AI stock weakness and Brent crude above $113 pressured risk appetite.
Bitcoin fell below $81,000 on October 22 as technology stocks sold off and oil prices climbed. Ether also dropped below $2,400. The decline came ahead of the Federal Reserve’s October 27–28 meeting, with investors watching inflation and geopolitical risks.
Bitcoin and Ether Give Back Recent Gains
Analyst Ash Crypto reported that Bitcoin and Ether had given back their recent gains amid renewed selling pressure across crypto markets. Meanwhile, an estimated $120 billion was wiped from the total crypto market value during the sell-off.
Selling extended beyond digital assets. Nasdaq Composite fell 2.6% on Thursday, while the S&P 500 lost 1.21%. The Philadelphia Semiconductor Index dropped 6.7% as investors reassessed the cost and expected returns of artificial intelligence investment.
AI Concerns and Oil Prices Drive Risk Aversion
Earnings reports renewed concerns about whether heavy AI infrastructure spending would generate sufficient returns, putting pressure on technology stocks.
Brent crude rose 4% to $113.17 a barrel, its highest level in five months, as escalating Middle East tensions unsettled energy markets. Supply disruption fears intensified following reports of Houthi attacks in Saudi Arabia and the possibility of U.S.-Israeli strikes on Iran after the November 3 midterm elections. However, the reports describe a possible scenario rather than a confirmed decision to launch new attacks.
Higher oil prices can raise transport and production costs, making inflation harder to control and reviving concerns about further interest-rate increases. Sources reported that markets were pricing in another quarter-point U.S. rate hike before year-end.
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Fed Meeting Adds Another Event Risk
The Federal Open Market Committee is scheduled to meet on October 27–28, according to the Fed calendar. Investors will watch for signals on inflation and interest rates, which influence borrowing costs and demand for speculative assets.
Leverage can also accelerate a drop. When prices fall past margin thresholds, exchanges automatically close some borrowed long positions, creating additional sell orders. Price action alone, however, does not establish how much of Thursday’s decline came from liquidations.
Bitcoin’s next move will depend partly on how inflation concerns, geopolitical tensions, and expectations for U.S. interest rates evolve. With the Fed meeting approaching, investors will be watching for signals that could shape risk appetite across crypto and traditional markets. However, Thursday’s decline alone does not confirm a lasting shift in market sentiment or a deterioration in crypto fundamentals.
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Related: Oil Price Manipulation or War Premium? Why WTI Lags Brent Above $111
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