The Nasdaq selloff may have been amplified by one large investor being forced to unload technology shares, Fundstrat’s Tom Lee suggested on CNBC, according to BeInCrypto’s October 31 report. His explanation remains a theory, not a confirmed liquidation. The report also described Intel’s weak forecast and investor hesitation before the November 3 US midterm elections.
Key Takeaways
- Lee suspected forced selling but did not identify an investor or establish that a liquidation occurred.
- BeInCrypto reported that the Nasdaq Composite finished October down 5.3%, its weakest month since March 2025.
- Intel fell 28.6% after a weak fourth-quarter forecast, while Amazon reported negative free cash flow.
- Bitcoin and Ethereum recorded modest 24-hour gains in the October 31 snapshot, despite weekly losses.
What happened in the Nasdaq selloff
Speaking while stocks were falling on Friday, Lee described trading as an “internal battle” rather than evidence that investors were abandoning equities altogether. According to BeInCrypto’s account of his CNBC appearance, he suspected someone was being liquidated but acknowledged that he did not know whether the seller was an institution.
The report did not identify a seller or provide confirmation that a liquidation had occurred.
His evidence was the relative resilience of the equal-weight S&P 500, which gives each constituent the same importance. BeInCrypto reported that it was rising while Lee spoke, a sign to him that money remained in stocks.
But the picture weakened before the close. According to BeInCrypto, the equal-weight index ultimately fell 0.79% on Friday, compared with a 1.82% decline for the conventional S&P 500. The equal-weight version performed better, but both finished lower. That comparison alone does not establish forced selling.
Background and context behind the selling
The proposed mechanism behind the Nasdaq selloff involves borrowing to buy shares. As BeInCrypto explained, falling prices can prompt the lender to demand repayment, forcing the investor to sell. Large sales can then push prices lower still.
That explanation describes how forced selling can work; it does not establish what happened on Friday. The report also documented company-specific developments that complicate an explanation centered on one unidentified investor.
BeInCrypto reported that Intel dropped 28.6% on Friday after a weak fourth-quarter forecast, its worst session since 1974. Unlike the proposed liquidation, the earnings-related decline was a specific event described in the report.
The same report said Amazon disclosed $42.4 billion in negative free cash flow, driven by heavy AI spending. These developments provide context for the technology-stock losses without confirming or ruling out Lee’s theory.
Market reaction across stocks and crypto
According to BeInCrypto, Friday was the Nasdaq’s worst session since June 5. The outlet also reported that the 10-year Treasury yield closed at 4.93%. A week earlier, Lee had argued that yields back below 5% meant the AI selloff was ending.
Separately, CoinGecko’s October 31, 2026 snapshot at 16:13 UTC showed small 24-hour crypto gains alongside seven-day declines:
| Asset | Price, USD | 24-hour change | 7-day change |
|---|---|---|---|
| Bitcoin | $77,546 | +0.16% | -3.29% |
| Ethereum | $2,249.72 | +0.88% | -3.94% |
| Solana | $95.95 | +0.99% | -4.46% |
These readings do not establish that crypto was insulated from the Nasdaq selloff. They cover different measurement windows from Friday’s stock-market closing returns. Alternative.me’s Crypto Fear & Greed Index registered 30, classified as Fear, on October 31.
What to watch next
For Lee’s explanation of the Nasdaq selloff, the central missing evidence is confirmation of a forced seller. Relative index performance offers context, but it cannot identify an investor or show why that investor sold.
BeInCrypto reported that Lee saw the November 3 elections as a reason large investors lacked conviction to buy falling shares. The outlet also relayed CNBC’s discussion of expectations that Democrats would edge ahead in both chambers. Those were market expectations, not election results.
Interest-rate expectations were another part of the report. BeInCrypto cited CME FedWatch odds of 72% for a December rate increase. That reported probability is a snapshot, not a policy commitment.
There was also a counterpoint to the idea that investors were broadly abandoning stocks: according to BeInCrypto, Interactive Brokers chief strategist Steve Sosnick said his retail clients had not fled and had bought Alphabet heavily on Thursday. His observation concerns his clients, not every investor.
For crypto readers, the positive daily figures should be read alongside the weekly declines. Neither establishes what prices will do next. The stock-market discussion also illustrates the risk described in BeInCrypto’s explanation: borrowing to purchase shares can leave an investor facing forced sales when prices fall.
FAQ
Did one investor cause the Nasdaq selloff?
That has not been established. Lee suspected forced selling, according to BeInCrypto, but did not identify an investor or confirm a liquidation.
Why did Intel shares fall?
BeInCrypto attributed Intel’s 28.6% Friday decline to a weak fourth-quarter forecast. The report described it as Intel’s worst day since 1974.
Did Bitcoin fall alongside technology stocks?
The available figures use different periods. CoinGecko showed Bitcoin up 0.16% over 24 hours at 16:13 UTC on October 31, although it remained down 3.29% over seven days.
Sources
This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrencies are highly volatile; always do your own research before investing.
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