Stocks rebound into key tech earnings: Three things to know in Bitcoin this week
Analysis expects Bitcoin to retest $80,000 support again as stock markets attempt to recover last week’s losses.
Bitcoin (BTC) began the third week of October at $82,000 as crypto and stock markets showed signs of a tentative recovery. As US equities experienced a sell-off last week, the attention shifted towards corporate earnings, with around 15% of S&P 500 companies scheduled to report Q3 results. Notable names include SpaceX on Tuesday and Tesla and Meta on Wednesday.
Tech stocks have been a major focus after a significant drop last week, triggered by the KOSPI Composite Index losing 2.8% on October 12 and reaching its lowest point of 5,455 points on Thursday, marking a week-to-date decline of 17%. The contagion spread across neighboring Asian markets before US equities faced weakness later in the week. The S&P 500 finished Friday down 2% for the week.
Tech stocks faced considerable sell-side pressure due to concerns over AI expenditure plans and associated debt obligations. In Korea, competition in semiconductor manufacturing from China added to the downturn. Despite the panic reminiscent of "Black Monday," the KOSPI gained 1.8% on Monday and S&P 500 futures were 0.7% higher at the time of writing.
Market commentator The Kobeissi Letter noted that stocks should outperform due to investor demand, given persistent high US inflation and a global energy crisis. While tech giants led the S&P 500's strength, 80% of index stocks are trading below their all-time highs. Ahead of the Federal Reserve's next decision on interest-rate changes on October 28, markets have reduced expectations of policy tightening.
The Fed's December meeting carries just an 11% chance of a further pause, with a 75% probability of a 25-basis-point hike.
Written by urgent.news from Cointelegraph's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
