Bitcoin drops 7% in October, breaking seasonal gains pattern as AI trade cracks and oil-bond correlation shifts

Bitcoin (BTC) fell about 7% in October, breaking the seasonal "Uptober" gains pattern. The decline coincided with a crack in the AI trade, as the Magnificent Seven retreated through the month. Oil futures climbed while Treasury yields slid, breaking an 80% correlation seen this year. BlackRock's Jeffrey Rosenberg attributed the break to AI stocks, stating markets now view AI risk as secondary to geopolitical risk. Google's largest one-day drop on record, erasing about $500 billion in value, further highlighted the AI sector's impact on markets.