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Main takeaways:
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Disney and other consumer names disappointed on earnings, adding pressure to markets after the prolonged shutdown of the US government.
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Analysts see no sign of insider-driven Bitcoin selling, with BTC instead reflecting broader doubts about valuations and US economic stability.
The technology Nasdaq Index fell 2.3% on Thursday after Palantir CEO Alex Karp made cautious remarks about the profitability of the artificial intelligence sector. In an interview at Yahoo Finance’s Invest event, Karp he said not every AI implementation “will create enough value to justify the real cost.” Investors fear that the US economy may enter a weaker phase.
Shares of Palantir (PLTR), Intel (INTC) and CoreWave (CRWV) posted daily losses of 6% or more. Bitcoin (BTC) followed the broader risk move, trading up 6.5% after testing the $105,000 level on Wednesday. The pullback raised $350 million in liquidations of leveraged BTC bullish positionprobably contributing to the loss of the key psychological support of $100,000.
There is little evidence that traders are specifically worried about Bitcoin or that any major event has triggered additional fear or uncertainty. Analysts emphasize that recent selling pressure does not support the narrative that Bitcoin insiders are cashing out. According to PlanB, the creator of the stock-to-flow metricthe pressure of long-term supply originating from the holders who were active between 2017 and 2022.
The costs of creating AI and the macroeconomic problems of the United States worry investors
Tesla ( TSLA ) shares deepened their decline after the company was forced to recall more than 10,500 units of its self-consumption energy storage system. At least 22 reports of overheating linked to the $8,000 device, manufactured in the United States, prompted the preventive action. TSLA had already been under pressure after the delineation plans to build a 10-million-unit line of Optimium humanoid robots in Austin.
Beyond the AI ​​sector, traders have lowered their expectations for the path of the US Federal Reserve’s monetary policy. According to the CME FedWatch Tool, the implied probability of the Fed to cut interest rates below 3.5% from January 2026 slipped to 20%, down from 49% on Oct. 13. Analysts note that the Fed’s main concern remains sticky inflation, which continues to hit lower-income workers. according to at Yahoo Finance.
US President Donald Trump signed a temporary government funding bill to end the shutdown, but White House press secretary Karoline Leavitt said on Wednesday that some October economic reports may not be released. Former Fed Vice Chairman Lael Brainard warned that investments in artificial intelligence mask cracks “under the hood” as the rest of the economy struggles with weak demand.
Disney ( DIS ) shares fell 8% after the company reported weaker-than-expected quarterly results, pressured by its streaming and theatrical segments. The entertainment giant joins several other consumer-focused companies that have recently disappointed with earnings, including DoorDash ( DASH ), Dollar Tree ( DLTR ) and Starbucks ( SBUX ).
Related: US SEC, CFTC operations to resume after 43-day government shutdown
Investors have now reduced the visibility of the economic outlook after the record closing of government funding of 43 days. While some analysts argue that the United States Gross Domestic Product could take a 2% hit, others believe most of the negative effects will be reversed once federal spending resumes. RBC analysts have risen worries about the interpretation of US labor market data, “since furloughed and essential employees will be counted as unemployed.”
It may take time for investors to determine if stock market valuations are stretched and to assess the chances of the US government injecting liquidity through tax cuts or stimulus checks. Until then, Bitcoin (BTC) is likely to reflect broader economic uncertainty, amplified by the lack of consistent and reliable data.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed herein are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.
