Bitcoin Approaches Fifth Consecutive Weekly Loss as US Midterms, Oil Rebound and Apple Warning Rattle Markets

Bitcoin is heading toward its fifth consecutive weekly decline, a losing run that would rank as the joint third-longest in its history. Renewed geopolitical tensions, rising oil prices and concerns over corporate profit margins are adding to investor caution ahead of Tuesday’s US midterm elections.

Bill Ackman Defends Big Tech’s AI Spending

Pershing Square CEO Bill Ackman and Chief Investment Officer Ryan Israel argued that major technology companies are making strategic investments in artificial intelligence rather than simply spending defensively to protect their existing businesses.

Amazon (AMZN), Microsoft (MSFT), Google (GOOG) and Meta (META) have traditionally benefited from strong profitability, significant competitive advantages and substantial free cash flow. However, their plans to invest hundreds of billions of dollars in AI infrastructure have raised questions about future returns and capital requirements.

In their latest quarterly update, Ackman and Israel said they believe the companies’ spending is designed to accelerate growth and strengthen their competitive positions through a transformative technology.

Pershing Square, which holds substantial investments in Microsoft, Meta and Amazon, estimates that the hyperscalers could generate pre-tax returns on invested capital of 15% to 25% from expanding AI data-center capacity. The firm described this estimate as conservative and said the potential returns would significantly exceed financing costs.

Pershing Square Holdings recorded a 3.5% increase in net asset value during the third quarter, outperforming the S&P 500 by 120 basis points.

Elliott Investment Warns of a Potential Major Bear Market

Elliott Investment Management has issued a warning about the possibility of a substantial market downturn, arguing that several factors supporting the current bull market could quickly reverse.

Co-CEOs and co-CIOs Paul Singer and Jonathan Pollock said the market’s strong performance depends on multiple favorable conditions. A disruption to just one or two of those factors could trigger a chain reaction, turning bullish momentum into a self-reinforcing decline.

They described the potential shift in sentiment as a move from fear of missing out (FOMO) to fear of being wiped out (FOGO).

The hedge fund, which manages approximately $80 billion in assets, has reportedly underperformed broader markets. According to the Wall Street Journal, which reviewed the investor letter, Elliott returned 2% during the first nine months of 2026, compared with a 13% gain for the S&P 500 and a broad hedge fund index.

The Journal also noted that Elliott’s investor communications frequently adopt a pessimistic outlook, making the latest warning consistent with the firm’s historical approach.

Singer and Pollock said virtually every warning sign pointing toward a significant bear market was currently flashing.

Central Banks Increase Gold Purchases Despite Price Decline

Central banks purchased 321 metric tons of gold during the third quarter, marking their strongest buying activity since late 2024.

The latest purchases brought total central bank gold acquisitions for the year to 675 tons, according to Bloomberg, citing data from the World Gold Council.

China and Poland accounted for the largest disclosed purchases, while Russia was the only major seller.

Official-sector demand has continued supporting gold even as the precious metal has lost approximately 25% of its value since the Iran conflict began in late February.

Liquid Restores Full Bitcoin Backing After Exploit

Liquid, a Bitcoin sidechain operated by a federation led by Blockstream, has restored full one-to-one Bitcoin backing for its LBTC token.

The network allows cryptocurrency exchanges and traders to transfer Bitcoin more quickly than transactions on the main Bitcoin blockchain.

The restoration comes nearly two months after a software exploit drained approximately 4,000 BTC from the system. The federation has not revealed who provided the funds needed to cover the remaining shortfall.

Direct withdrawals, however, remain subject to additional security controls.

Cardano Falls Below $0.19 as Traders Increase Bearish Positions

Cardano’s ADA token dropped to approximately $0.188 on Tuesday, according to CoinDesk data, after breaking below an upward trendline that now acts as resistance near $0.218.

Market positioning suggests traders are increasingly anticipating further losses. ADA’s long-to-short ratio on CoinGlass stood near 0.82, indicating roughly six bearish positions for every five bullish ones. The reading was also close to its lowest level in more than a month.

Funding rates have turned slightly positive, meaning traders holding long futures positions continue paying to maintain their bullish exposure.

CryptoQuant also identified large orders across ADA spot and futures markets, alongside stronger selling activity. While this does not establish that major holders are liquidating their personal holdings, it points to substantial sell-side pressure.

ADA is trading below its 50-day and 100-day moving averages, located near $0.216 and $0.215, respectively. Together with the broken trendline, these levels create a resistance zone between $0.215 and $0.218.

The token’s relative strength index is hovering around 30, a level commonly associated with oversold conditions. If selling continues, the next significant chart support is near $0.155.

US Launches Strikes on Iran Ahead of Midterm Vote

The United States carried out airstrikes on Iran’s Qeshm Island in the Strait of Hormuz, according to the BBC.

Officials described the operation as limited and said it followed an incident in which Iran’s Islamic Revolutionary Guard Corps (IRGC) fired on a US aircraft. Iran’s state news agency, IRNA, also reported several explosions on the island on Monday.

The military action came just ahead of Tuesday’s US midterm elections, adding another geopolitical development for financial markets to assess.

Bitcoin’s Fifth Weekly Loss Could Match Its Third-Longest Losing Streak

Bitcoin was trading near $76,500 after declining from approximately $87,000 across weeks 40 to 44. If the cryptocurrency finishes another week in negative territory, it will record five consecutive weekly losses, matching its joint third-longest losing streak.

Bitcoin’s most prolonged period of consecutive weekly declines lasted eight weeks in 2022, spanning weeks 14 through 21. Earlier in 2026, the cryptocurrency also recorded six straight weekly losses between weeks 3 and 8.

The upcoming US midterm results are adding uncertainty to an already fragile market environment, with technology-sector weakness and geopolitical developments influencing investor sentiment.

West Texas Intermediate (WTI) crude gained 2% to approximately $98 per barrel, while Brent crude moved back above $106 following reports of US strikes on Iran’s Qeshm Island.

Apple (AAPL), meanwhile, exceeded Wall Street expectations for revenue and earnings in its fiscal fourth quarter. However, the company’s warning about rising costs overshadowed the results.

The technology giant, valued at just under $5 trillion, cautioned that an unprecedented increase in memory chip prices and the expenses associated with operating its AI services could put pressure on profit margins. Apple shares fell approximately 5% in premarket trading.

Precious metals also surrendered gains from Monday. Gold declined 1% to around $3,900 per ounce, while silver dropped 3.5% to below $49.

Despite weakness across several major assets, the Invesco QQQ Trust (QQQ), which tracks the Nasdaq-100, edged slightly higher in premarket trading.

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