PremiumBitcoin & Bullion Bid Amid Wild Week As Energy War Spreads, Bankers Hike, & AI Anxiety Peaks
Tl;dr: The week began with a widening energy-supply shock and an unexpected bout of AI existential anxiety, then became a test of whether central banks would tolerate another inflation surge. They would not: the Fed and BoJ raised rates, the BoE delivered a hawkish hold while retreating from disruptive gilt sales, and markets rapidly priced a broader global tightening cycle. Brent remained above $100 despite a mid-week retreat, (10Y) Treasury yields crossed 5%, the dollar strengthened, and equities endured Monday's AI-'pause'-essay wrecking Semis on Monday, and a Wednesday Fed selloff, and then got faded as the 'CapEx-is-still-the-trade' narrative reasserted itself with tech leading a sharp (but brief) rebound (S&P ended the week red). Underneath the recovery, however, fund flows showed investors withdrawing $23.2 billion from global equities while favoring government debt, short-duration bonds and precious metals. Bitcoin was the week's biggest winner, surging on Friday.
