Bitcoin Uptober Failed as Oil, Bonds and AI Broke Pattern: What Changed?

The slide came as the artificial intelligence (AI) trade cracked. Oil futures climbed as Treasury yields slid, breaking an 80% correlation seen this year.

Meanwhile, Bitcoin dropped about 4% late Thursday, hours before Friday's Nasdaq selloff and instep with the historic hack of Binance. Jeffrey Rosenberg, a senior portfolio manager at BlackRock, traces the break to AI stocks.

The Magnificent Seven, the largest AI-linked US companies, retreated through October. "In the market's mind, the geopolitical risk is secondary to AI risk."

The Magnificent Seven have had a tough October. Source: CNBC In his view, markets now read AI weakness as a warning for US growth.

That pulled yields lower even as oil climbed. Rosenberg calls third-quarter gross domestic product (GDP) strong and AI-related.

Earlier coverage

• Tyler Evans: Bitcoin ETF Flows Flipped From “Highly Negative” to “Strong Accumulation” Oct 30
• Osmosis Restores AllBTC Backing Using Seized Tokens, Community Funds Oct 28