Bitcoin Tests Key Support as Oil and AI Fears Squeeze Markets — SkimNews
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- Bitcoin trades around $82,164, hovering just above the 0.236 Fibonacci support at $81,603 after tagging $83,040 earlier Monday and giving back part of the gain, defying seasonal 'Uptober' expectations.
- Brent crude trades near $108 a barrel after weekend attacks on Persian Gulf tankers and Russian crude facilities, lifting fuel and freight costs that feed directly into consumer prices.
- September inflation data showed CPI up 3.7% year-over-year and PPI jumping 6.3% — the biggest annual rise since 2022 — pushing traders to price roughly a 15% chance of a quarter-point Fed hike next week.
- Treasury yields sit at 5.08% on the 10-year and 4.72% on the 2-year, offering a near risk-free 5% that competes with stocks and crypto while raising debt-service costs for AI-capex borrowers.
- AI-leveraged stocks sold off sharply Friday: AMD dropped 6% and Micron 5.6% on the day, while CoreWeave, which rents AI compute and funds most of its data-center buildout with debt and share sales, lost roughly 24% over the week.
- Spot Bitcoin ETFs shed about $910 million over the past two weeks, adding to the bearish pressure on the digital asset.
- Bitcoin's technicals flag indecision: the ADX reads 21.6 (below the 25 trend threshold), RSI is at 49.3 (dead neutral), and the Squeeze Momentum Indicator has been 'on' for 13 days with momentum leaning mildly down at -1.42.
Why it matters: Spot Bitcoin ETFs have shed roughly $910 million over two weeks while debt-funded AI plays like CoreWeave dropped about 24% in a single week, showing that a 5%-plus 10-year yield is forcing a painful repricing of every risk bet funded with leverage, with Meta and Tesla earnings and the Fed's October decision due this week as the next catalysts.
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