Gold is up. Bitcoin, copper, stocks and Treasury yields are all down. The pattern is a stagflation trade — investors fleeing growth assets and seeking safety — driven by an AI selloff that dragged South Korea’s Kospi down 8% and triggered circuit breakers overnight. Nearly $1 billion in crypto futures were liquidated in 24 hours following Wednesday’s hot CPI print, though rate-hike odds have since cooled to 26% from a spike near 47%. The 10-year yield is at 5.08%, down eight basis points from its recent peak. 10x Research still prefers holding bitcoin through this unwind — but only above $78,000. Stay alert.
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Bitcoin, copper, stocks and yields all fall — gold rises
The asset moves today point to a stagflationary read on the macro environment: copper futures fell nearly 1% extending Wednesday’s 1.6% decline, stocks fell broadly, Treasury yields dropped as bond prices rose, and gold gained 1% as a haven. Bitcoin and crypto fell alongside growth assets. The catalyst was a worsening AI selloff that dragged South Korea’s Kospi down 8% — triggering circuit breakers — while Nasdaq 100 futures slid around 1%. Concerns about an October Fed rate hike briefly pushed hike odds to 47% on CME FedWatch following Wednesday’s hot CPI, but those odds have since retreated to 26%. InvestingLive analyst Giuseppe Dellamotta framed it plainly: risk assets and the U.S. dollar underperform in a stagflationary environment, while gold outperforms. 10x Research still prefers holding bitcoin through the AI unwind, but only while BTC holds above $78,000 — a level to watch.
Bitcoin holds above $80,000 as a Korean stock rout drags altcoins lower
Bitcoin touched just above $80,000 overnight — near the October 8 low of $80,300 — before buyers stepped in and the price rebounded. Altcoins took heavier losses: the CoinDesk 80 slid 2.2% versus 0.7% for the bitcoin-heavy CoinDesk 5, and all but six CoinDesk 100 members were lower. Nearly $1 billion in crypto futures positions were liquidated over 24 hours, up from roughly $136 million the prior day, driven primarily by long positions in ether ($200 million) and bitcoin ($115 million). Despite the price drop, bitcoin futures open interest rose 1.6% in dollar terms — implying fresh short positioning rather than capitulation. BVIV implied volatility is holding above 40% for the second straight day. On Deribit, options flow is two-way in bitcoin (both calls at $90K and $86K and puts are in the top-five volume leaders) but tilted defensive in ether, where puts dominate.
Hyperliquid’s founder wants U.S. oversight of trading platforms — not the blockchain
Hyperliquid founder Jeff Yan told Bloomberg that CFTC oversight should target the financial firms deploying products on his blockchain — not the underlying network itself — drawing an analogy to how financial firms using internet infrastructure are regulated. The proposal would allow Wall Street companies to build regulated trading businesses on Hyperliquid without requiring the blockchain to register as an exchange. It has practical implications already in motion: Kraken’s parent company Payward plans to offer U.S. investors Hyperliquid-powered perpetual futures through a regulated exchange, even while Hyperliquid’s own perps market remains closed to U.S. customers. Yan’s comments follow Trump’s August statement that the CFTC was working to bring Hyperliquid into the U.S. regulatory framework. His framing — regulate the deployer, not the infrastructure — is a meaningful contribution to the broader debate over how to classify decentralized financial platforms.
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L1.co Disclosure: This material is for informational purposes only, and the content contained herein should not be considered investment advice or a solicitation, offer, or recommendation to sell or buy any asset, strategy, or product. Investing in digital assets involves a high degree of risk, including the loss of principal.
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