The AI crypto sector's market capitalization fell 16% in October; Apple's earnings report and the U.S. midterm elections in November are poised to act as the next catalysts.

According to AMBCrypto, sell-offs in AI-related US stocks—driven by concerns over high AI spending, rising debt, and uncertain returns—spilled over into the crypto market, triggering a notable correction in AI-themed crypto segments in October. Data from CoinPaprika shows the segment’s total market capitalization fell from around $16.32 billion on October 3 to approximately $13.72 billion on October 31, erasing roughly $2.6 billion, a decline of about 16%. The segment had previously surged around 54% in September, far outpacing the overall crypto market’s 24% gain in the same period. NEAR, the largest AI-linked crypto asset by market cap, dropped over 16% over the same timeframe, wiping more than $200 million off its valuation and erasing nearly half of its roughly 178% September gain. Over October, Nvidia’s stock fell more than 10%; on October 30, the Nasdaq dropped 2.86%, Nvidia fell 4.2%, AMD fell 10.9%, and the Nasdaq 100 index declined over 5.8% for the month. Earnings reports from Intel and Amazon also missed expectations. Looking ahead to November, Apple’s earnings report, US midterm elections, and key economic data may act as the next triggers: a strong Apple performance could reinforce the AI narrative, while a disappointing result would likely keep AI-themed crypto tokens under pressure.