Key Takeaways
- • Bitcoin pushed above $83,000 to a weekly high, extending its recovery from below $80,000, as U.S. tech earnings revived optimism around the AI trade.
- • SpaceX reported net income of $4.4 billion, versus a loss of $1.1 billion a year earlier, and its stock traded up 9% ahead of the U.S. open.
- • Super Micro Computer said AI demand was strong enough that its revenue forecasts came in well above its own projections; shares traded 15% higher ahead of the open.
- • Bitcoin ETFs recorded $23 million in net inflows on Tuesday, down from $527 million on Monday, though October net outflows narrowed to $67 million.
- • Meta reports after the U.S. close, with consensus EPS of $3.56 on revenue of $63.3 billion and capital expenditure projected to rise 117% to $41 billion.
Summary
Bitcoin rose above $83,000 on the back of stronger-than-expected U.S. technology earnings, according to Investing.com, extending its recovery from below $80,000. The move came as risk sentiment improved after SpaceX and Super Micro Computer results revived optimism around AI-linked equities. Bitcoin was up 2.3% over the prior 24 hours but has traded within a relatively tight range of roughly $80,000 to $87,000 over the past month. Ethereum rose 3.5% and XRP 4.5% over the same period.
SpaceX reported net income of $4.4 billion, swinging from a loss of $1.1 billion in the same period last year, and its shares were trading up 9% ahead of the U.S. open. Super Micro Computer reported that AI demand was strong enough for revenue forecasts to come in well above its own projections, and its stock traded 15% higher. The results helped ease concerns over the AI trade, which had resurfaced in recent weeks over the scale of infrastructure spending, its funding and the timing of returns. The Nasdaq closed down 3% the previous week, its worst weekly performance since June.
Bitcoin often trades in tandem with tech and AI stocks, with a 30-day rolling correlation coefficient of 0.66 against the Nasdaq, indicating a moderate to strong positive relationship. The article attributes part of Bitcoin's support to the Nasdaq recovery. Attention now turns to Meta, which reports after the close and is expected to post EPS of $3.56 on revenue of $63.3 billion, compared with $1.55 and $51.2 billion in the same quarter last year. Capital expenditure is projected to rise 117% to $41 billion, and investors will assess whether AI spending is generating adequate returns. Strong results could extend the risk-on move, while a weak result could reverse the gains.
Macro conditions remain a constraint. U.S. Treasury yields and the dollar eased slightly but remain near multi-month highs, and oil trading at multi-month highs is adding to inflationary pressure, which may cap Bitcoin's upside for now. Spot Bitcoin ETFs recorded $23 million in net inflows on Tuesday, a sharp slowdown from $527 million on Monday, following nearly $1 billion in net outflows over the previous two weeks. Net outflows for October stand at $67 million.
On technicals, BTC/USD has recovered to $83,300 and holds above its 50-, 100- and 200-day exponential moving averages, with RSI at 53 indicating modest bullish momentum. Resistance sits at $84,000, the weekly high, then $87,000, the October peak, with $90,000 and $95,000 as further targets. Support is seen at $82,000, the May high, then $80,800 near the 50-day EMA, with the 200-day EMA near $76,000 as the next key level below.
SpaceX reported net income of $4.4 billion, swinging from a loss of $1.1 billion in the same period last year, and its shares were trading up 9% ahead of the U.S. open. Super Micro Computer reported that AI demand was strong enough for revenue forecasts to come in well above its own projections, and its stock traded 15% higher. The results helped ease concerns over the AI trade, which had resurfaced in recent weeks over the scale of infrastructure spending, its funding and the timing of returns. The Nasdaq closed down 3% the previous week, its worst weekly performance since June.
Bitcoin often trades in tandem with tech and AI stocks, with a 30-day rolling correlation coefficient of 0.66 against the Nasdaq, indicating a moderate to strong positive relationship. The article attributes part of Bitcoin's support to the Nasdaq recovery. Attention now turns to Meta, which reports after the close and is expected to post EPS of $3.56 on revenue of $63.3 billion, compared with $1.55 and $51.2 billion in the same quarter last year. Capital expenditure is projected to rise 117% to $41 billion, and investors will assess whether AI spending is generating adequate returns. Strong results could extend the risk-on move, while a weak result could reverse the gains.
Macro conditions remain a constraint. U.S. Treasury yields and the dollar eased slightly but remain near multi-month highs, and oil trading at multi-month highs is adding to inflationary pressure, which may cap Bitcoin's upside for now. Spot Bitcoin ETFs recorded $23 million in net inflows on Tuesday, a sharp slowdown from $527 million on Monday, following nearly $1 billion in net outflows over the previous two weeks. Net outflows for October stand at $67 million.
On technicals, BTC/USD has recovered to $83,300 and holds above its 50-, 100- and 200-day exponential moving averages, with RSI at 53 indicating modest bullish momentum. Resistance sits at $84,000, the weekly high, then $87,000, the October peak, with $90,000 and $95,000 as further targets. Support is seen at $82,000, the May high, then $80,800 near the 50-day EMA, with the 200-day EMA near $76,000 as the next key level below.
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