## Market Selloff Intensifies as Profit-Taking Takes Hold

Major cryptocurrencies, including **Bitcoin**, **Dogecoin**, and **Cardano**, slid up to 5% to start the week, extending a dismal run that made October the worst month for the market since 2015. Bitcoin hovered near $106,000 after briefly reclaiming $110,000 last week, while Dogecoin and Cardano's ADA led losses with 5% declines. Other tokens like Solana's SOL, BNB, and Ether also dropped up to 4%, with Tron's TRX remaining flat over 24 hours.

## Profit-Taking and Waning Momentum Drive Declines

The drawdown lacked immediate catalysts, pointing to **profit-taking** after recent price gains. Analysts noted that without new fundamental support, the market is leaning on technicals. Alex Kuptsikevich, chief market analyst at FxPro, highlighted Bitcoin's repeated failure to hold above $113,000 as a sign of **waning momentum**, with the market tracing lower highs. Despite this, the $3.5 trillion total market cap zone has attracted dip-buyers, and the start of a new month could offer a boost, though the historically positive 'Uptober' effect faded quickly.

## Long-Term Investors Increase Sales

Data from Glassnode shows that **bitcoin selling by long-term investors has tripled since June**, as those who bought near $93,000 take profits. However, spot trading volume in October topped $300 billion, the highest in a year, indicating strong two-way liquidity.

## Gold Pulls Back Amid Policy Shifts

Gold steadied around $4,000 per ounce after an early slide triggered by **China's decision to end tax rebates** for certain gold retailers. This policy shift could dent demand in one of the world's largest bullion markets, removing value-added tax offsets for sales from Shanghai exchanges. Gold's record rally in October, driven by retail frenzy and central bank accumulation, had already begun to fade, but prices remain over 50% higher year-to-date, reflecting persistent haven demand.

## Strengthening Correlation Between Bitcoin and Gold

The correlation between **bitcoin and gold** has strengthened in recent months, with both assets responding to shifts in monetary policy and geopolitical stress. The Fed's pause on tightening and prospects for cheaper capital might eventually revive risk asset demand, but traders are currently balancing safety and speculation.

Meanwhile, bitcoin selling by long-term investors has tripled since June, as buyers who entered near $93,000 take profits.

Bitcoin and Major Altcoins Plunge 5% as Long-Term Holders Cash In: What's Next for the Market?

**Meta stock (META) tumbled 11% this week** after the company missed earnings and confirmed it would spend even more on artificial intelligence data centers. The tech giant now expects about $71 billion in capital expenditures, up from $69 billion, and warned that 2026 will be an even heavier year for spending. That guidance sent a clear signal that the **AI arms race is still far from cooling off**.

For investors, the message was unsettling. **Meta’s spending spree is swallowing more of its cash flow**, with no promise that the return on those investments will arrive soon. The company’s commitment to expansion may strengthen its long-term AI position, but it also deepens short-term balance-sheet pressure and tests shareholder patience.

## Big Tech Turns Toward Heavy Spending

The world’s largest tech firms once bragged about being "capital-light." This story is over. Companies like Meta, Amazon (AMZN), and Microsoft (MSFT) are now funding massive physical infrastructure, from data centers to custom chips, to train and deploy AI models. As Doug Kass of Seabreeze Partners notes, the hyperscalers have transformed from asset-lean platforms into capital-intensive builders.

That shift means tech companies are behaving more like industrial firms. They are laying foundations, buying land, and raising debt. The promise of AI revenue may be huge, but it now carries real financing risk if demand cools or returns take longer than expected.

## Meta Taps the Bond Market to Keep Building

To support its expansion, Meta launched the year’s largest investment-grade corporate bond deal, raising about $30 billion. Investor appetite was enormous, with more than $120 billion in orders for the debt, according to multiple reports. The sale reflects the credit market’s strong faith in tech’s ability to pay back, even as spending surges.

Meta is not alone. Bank of America estimates about $75 billion in AI-linked debt has been issued in just two months. Cheap credit has made it easy for Big Tech to finance growth, but it also increases exposure to higher interest costs if the credit cycle tightens.

## Analysts Warn That Cash Flow Is Getting Tight

Analysts at Bank of America (BAC) expect AI capital expenditures for the biggest tech firms to reach nearly 94% of operating cash flow next year, up sharply from 76% in 2024. This leaves little room for dividends or buybacks, forcing boards to choose between rewarding shareholders or funding expansion.

Companies could slow their buybacks or issue equity, but debt remains the preferred option. At the moment, investors are happy to lend. If markets shift or growth slows, that confidence could evaporate fast, leaving even the strongest tech giants scrambling to balance their ambitions with financial reality.

## Is META a Good Stock to Buy?

Despite the selloff, Wall Street’s conviction in Meta remains strong. Out of 42 analysts tracked in the past three months, 33 rate the stock a Buy, eight recommend a Hold, and only one says to Sell. The average 12-month META price target sits at $847, implying more than 30% upside from the recent price.

![META Analyst Ratings](https://blog.tipranks.com/wp-content/uploads/2025/11/Screenshot-2025-11-03-at-13-1024x337.png)

![META Price Forecast](https://blog.tipranks.com/wp-content/uploads/2025/11/Screenshot-2025-11-03-at-13-1-1024x256.png)

Meta stock ($META) tumbled 11% this week after the company missed earnings and confirmed it would spend even more on artificial intelligence data centers. The tech ...

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