Live updates: Bitcoin tags $83,000 and slips back as chip stocks lead a rebound

“Irrational despair,” goes the title of a note from StoneX’s Mark Palmer on Galaxy Digital GLXY, one of the names swept up in the panic over AI data center stocks over the past couple of weeks.

The market is valuing GLXY as if CoreWeave (CRWV) — Galaxy’s tenant at its Helios data center — has already failed and Galaxy could find no other tenants, argued Palmer.

He reiterated his buy rating and $57 price target on GLXY. GLXY is higher by 3% pre-market to $16.80 following last week’s 20% decline.

CRWV is up 6% after falling 23.5%. Hut 8 HUT, TeraWulf WULF and IREN IREN are among those rising more than 5%.

“Next year, I will give one of my SpaceX SPCX shares to every kid in America,” tweeted Elon Musk early Monday morning. “This will be the first of many.”

The company reports its third-quarter results after the close on Thursday.

Oil prices have bounced from Asian session lows on fears of a fresh escalation in Middle East geopolitical tensions.

WTI futures have recovered to $98.55, down just 0.5% on the day, after hitting a low of $96.72 during Asian hours. Bitcoin BTC$82.836,58 and ether ETH$2.418,69 have erased their early gains.

A few hours ago, the U.S. reportedly issued warnings across 12 locations in the Middle East, warning it citizens of potential flight cancellations and airspace closures. The warning covers Saudi Arabia, the United Arab Emirates (UAE), Kuwait, Jordan, Bahrain, Oman, Iran, Qatar, Iraq, Lebanon, Yemen and Israel/Jerusalem.

This has triggered fears of fresh U.S. strikes on Iran and continued disruption of oil flow through the pivotal Strait of Hormuz.

Bitcoin climbed from an overnight low near $80,700 to just above $83,000 early Monday, then slipped back to about $82,400 within half an hour. Sellers were waiting for the move.

It was a quick turn. Bitcoin is up 0.3% over 24 hours, and $83,000 is still about $1,000 short of the ceiling that turned it back twice last week, near $84,000 on Oct. 13 and again on Oct. 14.

The bounce tracked a rebound in tech. Nasdaq 100 futures climbed 1.1%, snapping a weeklong 5.5% selloff, and S&P 500 futures rose 0.5%. An ETF tracking chipmakers jumped 3% before the U.S. open, on course for its first gain in 10 sessions. This week’s earnings will put the AI trade under the spotlight again.

Europe was weaker. The Stoxx 600 fell 0.8% after a weekend of protests in France, French bonds led a selloff in European debt, and the euro was the worst performer among major currencies. The dollar was flat, and Brent crude slipped from a five-month high.

A move through $84,000 would be the first sign the tech rebound is pulling bitcoin up with it.