Bitcoin Slips While S&P 500 Finds New High — 2nd Update

By Joseph Wilkins and Kirk Maltais

Bitcoin fell back below $86,000 on Tuesday, losing steam on the optimism seen in the U.S. stock market.

The flagship cryptocurrency slid after topping out around $86,600 in late morning trading, with it now down 0.3% to $85,571. The S&P 500 found an intraday high of 7830, and is on pace to settle above the previous record set in August.

A new wave of enthusiasm about AI has pushed tech stocks higher, with equities seemingly able to shrug off the global bond selloff. Bitcoin has gotten some of the tech-stock momentum, although it is staying rangebound between $84,000 and $87,000.

Investors are becoming increasingly excited about the effect of seasonality on bitcoin prices. The month of October has been positive for bitcoin in 10 out of the past 13 years, and the fourth quarter of the year has typically been strong for cryptocurrencies--though the fourth quarter of 2025 snapped a six-year winning streak.

"Seasonality now starts working in Bitcoin's favour," analysts with 21shares said in a report published Tuesday. The firm adds that if bitcoin manages to close out the month above $88,000, then that "confirms the trend change" and makes $100,000 possible by the end of the year.

But a positive October isn't a foregone conclusion, 21shares said. If bitcoin turns the other way and slides down to $81,000, then prices could sink to as low as $71,300, the firm said. Bitcoin is up 2% since the start of October.

Crypto markets are awaiting the next catalyst after expectations for the Federal Reserve to raise rates later this month have been trimmed in recent sessions. "A quieter macro week might be just what cryptocurrencies need to make some more headway," IG strategist Chris Beauchamp said in a note. The focus now turns to the coming U.S. earnings season, he added.

Investors are looking ahead to the Federal Reserve's next meeting, which will take place on Oct. 27 and 28. Holding rates could potentially ease the pressure seen on equity and commodity markets across the board. Last month's meeting resulted in the Fed raising its benchmark interest rate for the first time in three years.

Write to Joseph Wilkins at joseph.wilkins@wsj.com and Kirk Maltais at kirk.maltais@wsj.com

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October 06, 2026 15:27 ET (19:27 GMT)