The market is heading into one other key macro week. Q3 2026 earnings had been a bit disappointing.
With prices rising within the AI business, Amazon noticed its free money movement flip destructive at $42.4 billion, inflicting concern that its big AI investments will not be offering sufficient returns to match these valuations. As such, will probably be fascinating to see how the following set of earnings go.
Apple and Palantir will likely be reporting on Monday, the 2nd of November.
Notably, the figures are starting to indicate simply how massive the funding hole could possibly be.
According to Bloomberg, this may 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 below stress, may this additional strengthen Bitcoin’s standing as a macro hedge?
Interestingly, this week may supply some clues.
On a macro stage, in addition to earnings experiences, The Kobeissi Letter highlights 10 key items of knowledge 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 experiences, 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%) because of robust institutional demand and the launch of spot ETFs.
Interestingly, this makes the latest report from The Kobeissi Letter way more fascinating given the rising macro uncertainty that’s being seen within the markets.
As proven within the chart beneath, 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 valuable metals funds final week, marking their second weekly outflow prior to now 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 fascinating as it comes amid rising concerns in regards to the AI bubble and stress on tech shares, making the approaching week significantly important for Bitcoin’s macro hedge narrative.
In this context, Bitcoin may acquire extra consideration as buyers reassess conventional protected havens.
Final Summary
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Rising AI prices and market uncertainty are placing stress 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, exhibiting a distinction in investor flows.
