Bitcoin Heads for Fifth Weekly Decline as Midterm Vote and Geopolitical Risks Pressure Markets
Bitcoin is approaching its fifth consecutive weekly loss, potentially matching its joint third-longest losing streak on record. Rising oil prices, renewed tensions between the US and Iran, and concerns over technology companies’ profitability have added to market uncertainty ahead of Tuesday’s US midterm elections.
Ackman Says Big Tech’s AI Investments Could Deliver Strong Returns
Pershing Square founder Bill Ackman and Chief Investment Officer Ryan Israel have defended the massive artificial intelligence investments being made by major technology companies, arguing that the spending could generate substantial long-term returns.
Amazon, Microsoft, Google and Meta have historically benefited from strong cash flows, high profitability and significant competitive advantages. However, their plans to commit hundreds of billions of dollars to AI infrastructure have raised concerns that the spending could weaken their financial performance.
In their quarterly investor update, Ackman and Israel argued that the investments are intended to expand existing businesses rather than simply defend their market positions.
Pershing Square maintains significant holdings in Microsoft, Meta and Amazon. The firm estimates that investments in AI data-center capacity could deliver pre-tax returns on invested capital of 15% to 25%, comfortably exceeding the companies’ financing costs.
Pershing Square Holdings reported a 3.5% increase in net asset value during the third quarter, outperforming the S&P 500 by 120 basis points.
Elliott Investment Sees Warning Signs of a Major Bear Market
Elliott Investment Management has raised concerns that the current market rally could reverse sharply if even a small number of its supporting factors weaken.
The firm’s co-CEOs and co-CIOs, Paul Singer and Jonathan Pollock, warned that several conditions have combined to fuel the market boom. A disruption to one or two of these factors could trigger a cascading decline and quickly change investor sentiment from fear of missing out to fear of severe losses.
The hedge fund, which oversees approximately $80 billion in assets, has reportedly lagged behind major market benchmarks. The Wall Street Journal, citing an investor letter, reported that Elliott gained 2% during the first nine months of 2026, compared with a 13% advance for the S&P 500 and a broader hedge fund index.
The publication also pointed out that Elliott’s investor letters have historically carried a pessimistic tone.
Singer and Pollock said nearly every warning indicator associated with a substantial bear market was currently flashing.
Central Banks Accelerate Gold Accumulation
Central banks purchased 321 tons of gold during the third quarter, representing their fastest buying pace since late 2024.
The purchases lifted total central bank acquisitions for 2026 to 675 tons, Bloomberg reported, citing World Gold Council figures.
China and Poland were the largest disclosed buyers, while Russia was the only major central bank seller.
The accumulation continued despite gold losing approximately 25% of its value since the Iran conflict began in late February.
Liquid Re-establishes Full Bitcoin Coverage for LBTC
Liquid has restored its LBTC token to full one-to-one Bitcoin backing nearly two months after a software exploit removed approximately 4,000 BTC from the network’s reserves.
The Bitcoin sidechain, operated by a federation led by Blockstream, enables exchanges and traders to transfer BTC more quickly than on the main Bitcoin network.
The federation has not identified the source of the funds used to cover the remaining deficit. It has also maintained additional restrictions on direct withdrawals while security controls remain in place.
ADA Drops to $0.188 as Bearish Market Positioning Increases
Cardano’s ADA token declined to approximately $0.188 on Tuesday after breaking below an ascending trendline. That former support level has now become resistance near $0.218, according to CoinDesk data.
Trading data indicates that bearish positions are gaining ground. CoinGlass showed ADA’s long-to-short ratio at approximately 0.82, suggesting around six bets on lower prices for every five positions anticipating gains. The reading was close to its lowest level in more than a month.
Futures funding rates have turned slightly positive, indicating that traders maintaining long positions are still paying to keep their bullish exposure open.
CryptoQuant also highlighted large transactions in both spot and futures markets, accompanied by stronger selling activity. Although this does not prove that major holders are directly selling their ADA reserves, it indicates elevated selling pressure.
ADA is trading below its 50-day and 100-day moving averages, positioned near $0.216 and $0.215. These averages, combined with the broken trendline, create a resistance range between $0.215 and $0.218.
The relative strength index is approaching 30, a level commonly associated with oversold conditions. If the decline continues, chart support is located near $0.155.
US Airstrikes on Iran Add to Election-Day Uncertainty
The United States launched airstrikes against Iran’s Qeshm Island in the Strait of Hormuz, the BBC reported.
US officials described the strikes as limited and said they followed an incident involving Iran’s Islamic Revolutionary Guard Corps (IRGC), which allegedly fired on a US aircraft.
Iran’s state news agency, IRNA, reported several explosions on the island on Monday.
The operation took place just before Americans headed to the polls for Tuesday’s midterm elections, adding another geopolitical risk to an already uncertain market environment.
Bitcoin’s Losing Streak Approaches a Historic Milestone
Bitcoin has declined from approximately $87,000 to around $76,500 over weeks 40 through 44. A fifth consecutive weekly loss would place the current downturn among the cryptocurrency’s three-longest losing streaks, on a tied basis.
The longest recorded streak lasted eight weeks in 2022, covering weeks 14 through 21. Bitcoin also experienced six consecutive weekly declines earlier in 2026, between weeks 3 and 8.
Meanwhile, energy markets reacted to renewed developments involving Iran. WTI crude rebounded 2% to approximately $98 per barrel, while Brent crude climbed above $106 following reports of US military action on Qeshm Island.
Apple also added to investor concerns despite delivering better-than-expected quarterly revenue and earnings on Monday. The company warned that an unprecedented increase in memory chip costs, alongside expenses associated with its AI services, could put pressure on margins.
Apple shares, valued at just under $5 trillion, fell approximately 5% in premarket trading following the warning.
Precious metals also reversed their previous session’s gains. Gold declined 1% to roughly $3,900 an ounce, while silver dropped 3.5% to below $49.
Despite the broader weakness, the Invesco QQQ Trust (QQQ) edged higher in premarket trading, showing some resilience in the technology-heavy equity market.
