Tesla's Q3 earnings report falling short of expectations has sparked tension in the U.S. stock market. Coupled with Trump considering restrictions on Chinese software exports, market pessimism is on the rise. The biggest challenge might come after the CME opens in the morning, as well as whether the Chinese government will take more aggressive countermeasures. Currently, U.S. stocks and BTC are still highly correlated, which means the decline in the stock market is affecting Bitcoin's price trends, even though there’s no direct negative news for BTC itself. In terms of style attributes, Bitcoin is more akin to a High Beta + Momentum Trade asset. In other words, when High Beta, AI Winners, Non-Profitable Tech, Retail Favourites, and Most Short Basket stocks drop, BTC also comes under pressure. BTC is one of the first assets to rise in a risk-on cycle and also one of the first to face liquidation. This is the fundamental reason why BTC has been dropping in sync with AI Winners and Non-Profitable Tech stocks in recent days. To put it simply, BTC is still highly correlated with tech stocks. If tech stocks take a hit and drop, BTC won’t be able to escape the same fate. (This is explained clearly in the pinned weekly report.) This article is sponsored by Bitget ｜ @Bitget_zh