Bitcoin Faces Another Weekly Slide as Iran Tensions and AI Spending Concerns Weigh on Markets

Bitcoin remained under pressure on Tuesday, with prices tracking toward a fifth consecutive weekly decline as investors assessed escalating geopolitical risks, uncertainty surrounding the US midterm elections and mounting concerns about corporate spending on artificial intelligence.

The cryptocurrency has retreated from approximately $87,000 to around $76,500 over the past five weeks. Meanwhile, rising oil prices and disappointing signals from major technology companies have added to the cautious mood across financial markets.

Bitcoin Nears One of Its Longest Losing Runs

Bitcoin traded at approximately $76,710.93, putting it on course for five consecutive weekly losses. If the trend continues, the streak would rank as the joint third-longest in the cryptocurrency’s recorded history.

The longest such period occurred in 2022, when Bitcoin declined for eight straight weeks between weeks 14 and 21. Earlier in 2026, the asset also recorded six consecutive weekly losses from weeks 3 through 8.

The latest decline has unfolded during weeks 40 to 44, with Bitcoin falling from roughly $87,000 to about $76,500.

Investor uncertainty has increased ahead of Tuesday’s US midterm elections. Political developments, pressure on technology shares and renewed tensions in the Middle East have created an increasingly challenging backdrop for risk assets.

Iran Developments Push Crude Prices Higher

Oil prices advanced after reports of US strikes on Iran’s Qeshm Island, which sits near the Strait of Hormuz, a critical route for global energy shipments.

The BBC reported the military action, while US officials said the strikes were limited and followed an incident involving Iran’s Islamic Revolutionary Guard Corps (IRGC), which allegedly fired on a US aircraft. Iran’s state news agency IRNA separately reported several explosions on the island on Monday.

Following the reports, West Texas Intermediate crude gained 2% to approximately $98 per barrel. Brent crude moved above $106.

The escalation came shortly before the US midterm elections, adding to the geopolitical risks already being monitored by investors.

Apple Shares Fall Despite Strong Quarterly Results

Apple reported better-than-expected earnings and revenue for its fiscal fourth quarter on Monday, but its outlook raised concerns about the financial impact of the AI investment cycle.

The company warned that unprecedented increases in memory chip prices, alongside the expense of running AI tools, could put pressure on profit margins.

Apple’s market value remained just below $5 trillion, yet its shares declined approximately 5% in premarket trading following the warning.

The Invesco QQQ Trust was marginally higher before the opening bell, indicating that the weakness in some major technology stocks had not resulted in an equivalent decline across the broader Nasdaq-linked fund.

Elsewhere, gold fell 1% to approximately $3,900 per ounce, while silver dropped 3.5% to below $49.

Bill Ackman Defends Big Tech’s AI Infrastructure Push

Pershing Square CEO Bill Ackman and Chief Investment Officer Ryan Israel believe major technology companies could earn substantial returns from their expanding AI infrastructure investments.

Amazon, Microsoft, Google and Meta are committing hundreds of billions of dollars to data centers and related infrastructure. The spending has prompted questions about whether these companies can maintain their historically strong profitability and free cash flow.

However, Ackman and Israel argue that the investments are primarily aimed at capturing new growth opportunities rather than defending existing market positions.

Pershing Square has sizable investments in Microsoft, Meta and Amazon. The firm estimates that AI data-center projects could generate pre-tax returns on invested capital ranging from 15% to 25%.

The investment managers consider this estimate conservative and believe the projected returns comfortably exceed financing costs.

Pershing Square Holdings reported a 3.5% increase in net asset value in the third quarter, outperforming the S&P 500 by 120 basis points.

Elliott Investment Management Raises Bear Market Concerns

While Ackman remains optimistic about the potential returns from AI spending, Elliott Investment Management has warned that the broader market rally could be vulnerable to a sharp reversal.

The $80 billion investment firm, led by co-CEOs and co-CIOs Paul Singer and Jonathan Pollock, said the current boom relies on several favorable conditions remaining intact. A disruption affecting even one or two of these drivers could trigger a broader market unwind.

The firm also described the potential shift in investor sentiment as a move from FOMO, or fear of missing out, to FOGO, meaning fear of getting obliterated.

According to an investor letter reviewed by The Wall Street Journal, Elliott generated a 2% return during the first nine months of 2026. The S&P 500 advanced 13% over the same period, while a broad hedge fund index also performed better.

The firm’s latest assessment warned that nearly every major indicator pointing toward a substantial bear market was flashing.

Central Banks Purchase 321 Tons of Gold in Third Quarter

Central banks accelerated their gold accumulation during the third quarter, purchasing 321 metric tons. This represented their strongest buying activity since late 2024.

Bloomberg, citing World Gold Council data, reported that official-sector purchases reached 675 tons during the first nine months of 2026.

China and Poland were the largest disclosed buyers, while Russia was the only major seller.

The purchases continued despite gold losing approximately 25% of its value since the Iran war began in late February.

Liquid Completes Restoration of LBTC Reserves

Liquid, the Bitcoin sidechain operated by a federation led by Blockstream, has restored full one-to-one Bitcoin backing for its LBTC token.

The recovery comes nearly two months after a software exploit drained approximately 4,000 BTC from the system.

Liquid enables faster Bitcoin transfers between participating platforms compared with transactions on the main Bitcoin network.

However, the federation has not identified the source of the Bitcoin used to cover the remaining reserve deficit. Direct withdrawals also remain subject to additional security controls.

Cardano Drops Below Key Support as Bearish Bets Increase

Cardano’s ADA token declined to approximately $0.188 on Tuesday after losing an ascending trendline that had previously acted as support. The broken trendline now presents resistance near $0.218.

CoinGlass data showed ADA’s long-to-short ratio at approximately 0.82, indicating that bearish positions outnumbered bullish ones by roughly six to five. The reading was close to its lowest point in more than a month.

Funding rates remained slightly positive, showing that traders holding long positions were still paying to maintain their exposure.

CryptoQuant also reported large orders across spot and futures markets, alongside stronger selling activity. Although this does not confirm that major holders are unloading their ADA holdings, it highlights increased pressure from sellers.

The token has fallen below its 50-day and 100-day moving averages, located around $0.216 and $0.215, respectively. These indicators, combined with the former trendline, create a resistance range between $0.215 and $0.218.

ADA’s relative strength index is approaching 30, a level commonly associated with oversold market conditions. Should selling continue, the next important downside level is around $0.155.