INTEL: Hedge funds dumped tech stocks at the fastest pace since 2016 as Bitcoin fell just 1.27% comp

Hedge funds sold technology stocks at their fastest pace in at least a decade during October’s market selloff, according to a report citing Goldman Sachs prime brokerage data. Bitcoin held up comparatively well during the same period as major technology stocks faced significant selling pressure.

Between October 9 and October 16, 2026, the Nasdaq-100 declined 5.49%, falling from 30,883.15 to 29,187.55. Bitcoin dropped approximately 1.27% over the same dates, moving from $82,546 to $81,501.

The comparison highlights Bitcoin’s relative resilience during a week of heavy selling across technology markets. However, the returns use closing prices recorded four hours apart, meaning the figures are not perfectly synchronized.

Hedge Funds Reduce Technology Exposure

Goldman Sachs prime brokerage data showed that hedge funds cut technology positions at the fastest pace since at least 2016 during the five trading sessions ending October 15.

Semiconductor stocks experienced the largest selling by dollar value. Technology exposure also recorded its biggest reduction in gross positions in two months.

Hedge fund net leverage declined to 48.6%, its lowest level in a year, reflecting a broader reduction in market risk.

Bitcoin ETFs See Renewed Investor Demand

Despite Bitcoin’s relative strength, US spot Bitcoin exchange-traded funds experienced $228.4 million in net outflows between October 12 and October 16.

Investor demand improved on October 19 when spot Bitcoin ETFs attracted approximately $526.7 million in net inflows. BlackRock’s IBIT recorded $665.2 million in inflows that day, offsetting withdrawals from other funds.

The figures suggest that institutional demand for Bitcoin remained active despite turbulence in traditional financial markets.

What the Tech Selloff Means for Bitcoin

Bitcoin’s smaller decline offers an indication of relative strength during the latest technology stock selloff. However, one week of performance does not establish that Bitcoin has become independent of broader market conditions.

Further selling in technology stocks could still affect cryptocurrency markets if hedge funds and institutional investors reduce exposure across multiple asset classes.

Investors will be watching whether Bitcoin continues to outperform technology stocks and whether demand through spot Bitcoin ETFs remains strong.

Market data and institutional positioning cited from Goldman Sachs, Yahoo Finance and Farside Investors.