Bitcoin Faces Fifth Straight Weekly Loss as US Midterms and Iran Tensions Shake Markets

Bitcoin remained under pressure on Tuesday, putting it on track for a fifth consecutive weekly decline. If the losing streak continues, it would equal the cryptocurrency’s joint third-longest run of weekly losses. Rising crude prices, renewed US-Iran tensions and concerns about technology companies’ profit margins have further unsettled investors ahead of the US midterm elections.

Ackman Backs Hyperscalers’ Massive AI Investments

Pershing Square CEO Bill Ackman and Chief Investment Officer Ryan Israel believe the enormous spending commitments made by leading technology companies to develop artificial intelligence infrastructure could generate attractive returns.

Amazon, Microsoft, Google and Meta have traditionally maintained strong profit margins, competitive advantages and substantial free cash flow. Their plans to spend hundreds of billions of dollars on AI infrastructure have nevertheless raised concerns that these investments could weaken their financial positions.

In their latest quarterly update, Ackman and Israel argued that the spending represents an effort to expand business opportunities rather than simply defend existing operations.

Pershing Square holds sizable positions in Microsoft, Meta and Amazon. The investment firm estimates that AI data-center expansion could produce pre-tax returns on invested capital of 15% to 25%, which it considers significantly higher than the cost of financing those projects.

Pershing Square Holdings delivered a 3.5% gain in net asset value during the third quarter, beating the S&P 500 by 120 basis points.

Elliott Investment Management Warns of Major Market Downturn

Elliott Investment Management has cautioned that financial markets could face a significant bear market if the conditions supporting the current rally begin to deteriorate.

The firm’s co-CEOs and co-CIOs, Paul Singer and Jonathan Pollock, said the market boom depends on several favorable factors remaining in place. A disruption to even one or two of them could trigger a chain reaction, reversing the bullish trend and shifting investor psychology from fear of missing out (FOMO) to fear of getting obliterated (FOGO).

The hedge fund, which manages approximately $80 billion, has reportedly struggled to match broader market performance. The Wall Street Journal, citing an investor letter, reported that Elliott gained 2% during the first nine months of 2026. The S&P 500 advanced 13% over the same period, outperforming the fund alongside a broad hedge fund index.

The Journal noted that Elliott’s investor letters have frequently highlighted downside risks. In its latest communication, Singer and Pollock said virtually every warning signal pointing toward a substantial bear market was flashing.

Central Banks Boost Gold Buying to Highest Pace Since 2024

Central banks acquired 321 metric tons of gold during the third quarter, their strongest quarterly buying activity since late 2024.

The purchases lifted official-sector gold accumulation to 675 tons for the year, according to Bloomberg, which cited World Gold Council data.

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

The buying continued despite gold prices falling approximately 25% since the Iran conflict began in late February, indicating sustained interest in the metal among central banks.

Liquid Restores Full Bitcoin Backing Following Security Exploit

Bitcoin sidechain Liquid has returned its LBTC token to full one-to-one backing after a software exploit drained approximately 4,000 BTC from its reserves nearly two months ago.

The network, operated by a federation led by Blockstream, allows exchanges and traders to move Bitcoin faster than transactions on the main blockchain.

The federation has not disclosed who supplied the Bitcoin needed to cover the remaining reserve deficit. Direct withdrawals also remain subject to tighter controls following the incident.

Cardano Slips to $0.188 as Bearish Positions Build

Cardano’s ADA token fell to approximately $0.188 on Tuesday after breaking through an ascending trendline that had previously supported its price. The former support area has now become resistance near $0.218, according to CoinDesk data.

Derivatives positioning suggests traders are increasingly anticipating further declines. CoinGlass data placed ADA’s long-to-short ratio at around 0.82, representing roughly six bearish positions for every five bullish ones. The ratio was close to its lowest reading in more than a month.

Funding rates have turned slightly positive, meaning traders holding long futures positions continue paying to maintain their exposure.

CryptoQuant also identified large orders across spot and futures markets, alongside stronger selling activity. Although this does not establish that major investors are directly liquidating their ADA holdings, it points to increased supply pressure.

The token is trading below its 50-day and 100-day moving averages, near $0.216 and $0.215, respectively. Together with the broken trendline, these indicators establish a resistance zone between $0.215 and $0.218.

ADA’s relative strength index is hovering near 30, a level generally associated with oversold conditions. If sellers maintain control, the next major support level appears near $0.155.

US Strikes on Iran Add to Geopolitical Uncertainty

The United States carried out airstrikes on Iran’s Qeshm Island in the Strait of Hormuz, according to the BBC.

US officials described the operation as limited and said it was launched after Iran’s Islamic Revolutionary Guard Corps (IRGC) fired on a US aircraft. Iran’s state news agency, IRNA, separately reported several explosions on the island on Monday.

The military action occurred just before Tuesday’s US midterm elections, adding another source of uncertainty for investors monitoring geopolitical developments.

Bitcoin’s Losing Streak Approaches a Historical Record

Bitcoin has declined from approximately $87,000 to around $76,500 across weeks 40 to 44. A fifth consecutive weekly loss would place the current downturn alongside the third-longest losing streak in the cryptocurrency’s history.

Bitcoin’s longest recorded sequence of weekly declines lasted eight weeks in 2022, covering weeks 14 through 21. The cryptocurrency also suffered six consecutive weekly losses earlier in 2026, between weeks 3 and 8.

Oil markets reacted to the latest developments in the Middle East, with West Texas Intermediate (WTI) rising 2% to approximately $98 per barrel. Brent crude climbed above $106 following reports of US strikes on Qeshm Island.

Apple added to concerns about corporate profitability despite reporting better-than-expected revenue and earnings for its fiscal fourth quarter on Monday. The company warned that an unprecedented increase in memory chip prices and the cost of operating its AI services could squeeze profit margins.

Apple shares, which carry a market valuation just below $5 trillion, fell approximately 5% in premarket trading following the warning.

Precious metals also surrendered their previous gains. Gold declined 1% to around $3,900 per ounce, while silver dropped 3.5% to below $49.

Despite the weakness across several major assets, the Invesco QQQ Trust (QQQ) was slightly higher in premarket trading.