The market is heading into one other key macro week. Q3 2026 earnings had been a bit of disappointing.
With prices rising within the AI trade, Amazon noticed its free money circulate flip detrimental at $42.4 billion, inflicting concern that its large AI investments might not be offering sufficient returns to match these valuations. As such, will probably be attention-grabbing to see how the following set of earnings go.
Apple and Palantir will probably be reporting on Monday, the 2nd of November.
Notably, the figures are starting to point out simply how massive the funding hole may very well be.
According to Bloomberg, this can greater than double to roughly $330 billion in FY27, suggesting that AI bubble concerns are extra than simply short-term market noise. So, with equities beneath strain, might this additional strengthen Bitcoin’s standing as a macro hedge?
Interestingly, this week might supply some clues.
On a macro degree, apart from earnings studies, The Kobeissi Letter highlights 10 key items of information that would supply focus to October’s jobs and inflation figures. This comes at a time when the U.S. midterm elections are looming on the horizon, including one other layer of FUD to an already cautious market.
With the 6.8% drop on the Nasdaq in October and an inflow of earnings studies, this might trigger a change in market flows. This brings the macro-hedging narrative for Bitcoin again into play.
However, the important thing query is whether or not Bitcoin [BTC] can outperform conventional hedges as market uncertainty builds.
Bitcoin eyes a macro shift as gold ETF outflows speed up
Bitcoin’s 2024-2026 setup in opposition to gold is gaining consideration.
In 2024, Bitcoin outperformed gold by a large margin. Up 121%, Bitcoin loved a a lot stronger 12 months than gold (up 27%) on account of robust institutional demand and the launch of spot ETFs.
Interestingly, this makes the current report from The Kobeissi Letter rather more attention-grabbing given the growing macro uncertainty that’s being seen within the markets.
As proven within the chart under, the most important U.S. bodily gold-backed ETF, GLD, noticed $1.8 billion in outflows in October, its greatest month-to-month withdrawal since June. On a year-to-date foundation, GLD has misplaced $3.8 billion, placing it on observe for its first annual outflow since 2023.
Meanwhile, buyers pulled one other $1.5 billion from gold and treasured metals funds final week, marking their second weekly outflow previously seven weeks.
By distinction, Bitcoin ETFs noticed a minor $515 million outflow in October.
So technically, GLD recorded practically 3.5x extra outflows than all Bitcoin ETFs mixed in October. This is attention-grabbing as it comes amid growing concerns concerning the AI bubble and strain on tech shares, making the approaching week notably vital for Bitcoin’s macro hedge narrative.
In this context, Bitcoin might acquire extra consideration as buyers reassess conventional protected havens.
Final Summary
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Rising AI prices and market uncertainty are placing strain on equities, bringing Bitcoin’s macro hedge narrative again into focus.
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Gold ETFs noticed $1.8 billion in outflows in October, in comparison with simply $515 million from Bitcoin ETFs, displaying a distinction in investor flows.
