Bank of England Warns of 'sharp Market Correction' If AI Bubble Bursts

Bitcoin continued to hover near the $122,000 mark on Wednesday, struggling to regain momentum after a sharp correction.

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD consolidating after a 4.2% drop from its all-time highs earlier in the week.

The pullback had been anticipated, following a series of record-breaking highs that lacked strong follow-through.

Rapidly rising open interest in Bitcoin derivatives had also fueled speculation of a potential retracement, as excessive leverage often precedes short-term pullbacks.

Market Liquidity Begins to Recover

Analyst Skew described the price action as “very efficient” with “low volatility,” noting on X that larger traders exhibited “predatory” behavior on exchange order books during the correction.

Overnight, liquidity began to return to the market. Data from CoinGlass indicated improving bid- and ask-side activity, hinting at renewed stability after Tuesday’s volatility.

Skew suggested that the market could settle into a “consolidation range” in the near term, as traders reassess key price levels.

Traders Assess Key Support Zones

Analysts are now focused on identifying Bitcoin’s next potential support zone.

Trader ZYN highlighted that the $121,000 to $120,000 range offers limited technical support, suggesting prices could decline quickly if selling pressure increases.

“But just below, around $117K, nearly 190K BTC were last bought. That’s a heavy cluster of recent buyers,” ZYN said. “If we get a pullback into that range, it’s the kind of zone where demand usually shows up — strong buyers defending their entries, new capital stepping in. In short: weak cushion at $121K, but a very real floor forming at $117K.”

Material Indicators, a trading analytics firm, also identified $120,000 as a potential support zone but noted stronger technical support near $114,000, aligning with Bitcoin’s 50-day simple moving average (SMA).

Analysts Expect Further Dip Before Rebound

Crypto analyst Michaël van de Poppe believes the next buying opportunity could appear near $118,000.

“Bitcoin made a new all-time high, which is often a reference for people to be taking profits,” he said. “Slight pullback and we’re approaching my personal area of interest for potential dip buying.”

Many traders see the current correction as a healthy pause in Bitcoin’s broader uptrend, with on-chain data still pointing to strong long-term demand and institutional inflows.

The post Bitcoin Struggles to Reclaim Momentum With Plunge Down to $112,000 ‘Likely’ in October appeared first on London Insider.

Source: CryptoSlate

Prime Minister Keir Starmer said he wants the UK’s free trade agreement with India implemented “as soon as humanly possible,” as the two major economies deepen ties while US pursues a more protectionist trade agenda.Speaking to business delegates from the grand staircase of Mumbai’s Taj Mahal Palace hotel on Wednesday, Starmer said he has instructed his team to move quickly on the deal signed earlier this year.Starmer and his Indian counterpart Narendra Modi had finalized a free-trade agreement in July after three years of intense negotiations. The UK premier is in India this week — his first visit as prime minister — leading a delegation of more than 100 British business, academic, and cultural leaders to deepen commercial ties between the two countries.

“Our job is to make it easier for you to seize the opportunities,” Starmer told the business delegates. “On the plane home, I want each of you to tell me what you got out of this trip — a deal, a contact.”The British leader’s arrival was met with a warm welcome across Mumbai, the seaside megacity that is India’s business and financial capital. Hundreds of billboards and posters with Starmer’s face dotted the city, including some showing the British leader standing alongside Modi and praising the close ties between the two nations.

Still, the visit had some awkward undertones. Just hours before Starmer’s arrival, Modi announced warm birthday greetings to Russian President Vladimir Putin, calling him “my friend” and and praising “his personal commitment to deepening India-Russia ties.” Starmer has been a leader in urging nations to pressure Putin and bring him to the negotiating table to end his invasion of Ukraine.Starmer deflected a question while on the plane to India about the birthday greetings. “Just for the record, I haven’t sent birthday congratulations to Putin,” he told reporters.

Speaking in Mumbai, Starmer said the signing of the FTA is already boosting trade between the two nations. Starmer closed his address by taking a selfie with the gathered delegates with a disposable camera. The visit also comes a day after British Airways announced plans to start a third daily flight between London Heathrow and New Delhi.Yet, tensions over migration are expected to linger. On the flight to Mumbai, Starmer said he would resist demands from business to allow more highly skilled workers from India to come to the UK.“The visa situation hasn’t changed with the free trade agreement — we didn’t open up more visas,” Starmer said. “The issue is not about visas — it’s about business-to-business engagement and investment and jobs and prosperity coming into the United Kingdom.”

Source: Bloomberg Europe

Germany will eke out meager expansion of 0.2% this year before growth strengthens to 1.3% in 2026 supported by tens of billions of euros in fiscal stimulus, according to revised government projections.

The latest twice-yearly forecasts published Wednesday by Economy Minister Katherina Reiche are slightly more optimistic than April’s projections by the previous government and bring the outlook into line with Germany’s leading research institutes.

Reiche acknowledged that “a significant portion” of growth in coming years will come from the jump in government spending and cautioned that the stimulus will only be effective “if investments are implemented quickly.”

“To ensure long-term growth, we must resolve the reform backlog,” she said in an emailed statement. Outstanding tasks include accelerating planning and approval procedures, reducing energy costs, and promoting private investment, added the minister.

Chancellor Friedrich Merz’s ruling coalition of his conservatives and the Social Democrats, which took office in early May, is trying to restore meaningful growth to Europe’s biggest economy after several years of stagnation.

It loosened rules that constrain government borrowing to facilitate a massive program of debt-financed spending on infrastructure and the military, and has enacted measures designed to spur investment and cut back restrictive red tape.

In publishing their forecasts last month, the research institutes warned that more fundamental reforms to strengthen the economy, boost competitiveness and lift long-term growth prospects aren’t yet being implemented.

“The German economy is still on shaky ground,” said Geraldine Dany-Knedlik, head of forecasting at the Berlin-based DIW institute.

“It will recover noticeably in the next two years,” she added. “However, given ongoing structural weaknesses, this momentum will not last.”

Bundesbank President Joachim Nagel on Tuesday added his voice to calls for more urgent efforts to tackle the economy’s deep-seated problems and increase its growth potential.

It’s “time to speed up on the path to reform,” Nagel, who was appointed by the previous Social Democrat-led government, said in Athens. “To reignite productivity and foster growth, the government must take decisive action.”

The Economy Ministry cautioned that risks to Germany’s expected recovery include “the volatile trade and security policies” of the US, together with “potential counter-reactions from commercial partners.”

“Further obstacles could arise from an escalation of geopolitical crises or a potentially stronger-than-expected slowdown among Germany’s key trading partners,” it added. It expects growth of 1.4% in 2027, according to the new forecasts.

Source: Bloomberg Europe

In the volatile world of cryptocurrency trading, few assets command as much fervent attention as Ripple’s XRP. Long a battleground for bulls and bears alike, XRP has once again captured the spotlight—not for a regulatory win or partnership announcement, but for a stark pivot in technical sentiment from a prominent analyst. On October 8, 2025, @egcrypto, a seasoned voice in the crypto Twittersphere with a knack for Elliott Wave dissections, posted a pair of annotated TradingView charts under the cryptic banner “#XRP – Not Confident.” What unfolded was a visual narrative of eroding optimism, shifting from a “Before: Confident” setup to an “After” scenario laced with red flags.

The “Before” chart paints a picture of measured bullishness. XRP’s price action, framed against a backdrop of gray trendlines and green upward channels, suggests a classic ascending triangle pattern. Yellow annotations highlight potential breakout zones above the $0.60 resistance, with green triangles marking wave completions that align with a fifth-wave rally toward $0.75–$0.85. The analyst’s notes emphasize confluence: “Strong support at 0.55, volume spike incoming?” It’s the kind of setup that lures dip-buyers, evoking memories of XRP’s 2017 moonshot. Confidence here stems from macroeconomic tailwinds—easing Fed rhetoric and crypto’s post-halving glow—positioning XRP for a 20-30% upside leg.

Fast-forward to the “After” chart, and the tone darkens. Those green channels morph into precarious gray wedges, with red downward arrows signaling a breakdown below key supports. The ascending triangle? Now a descending one, complete with crimson alerts on failed retests of the 50-day EMA. Annotations scream caution: “Divergence confirmed, RSI overbought—trap?” The shift appears triggered by recent price rejection at $0.62, coupled with broader market jitters from Bitcoin’s sideways grind. @egcrypto’s pivot underscores a timeless trading axiom: patterns evolve, and overconfidence kills. XRP now hovers around $0.58, down 4% in the last 24 hours, testing the resolve of holders amid SEC overhang whispers.

This isn’t just chart porn for traders; it’s a microcosm of XRP’s perennial struggle. Despite Ripple’s legal victories, adoption lags behind Ethereum’s DeFi dominance and Solana’s speed. Yet, for contrarians, this “not confident” call could be the contrarian buy signal—after all, fear often precedes fortune in crypto. As @egcrypto urges subscribers to “stay ahead of the crowd,” the community buzzes with debates: Is this a healthy pullback or the prelude to a deeper correction?

For now, XRP traders should heed the tape. Scale in lightly on dips to $0.55, but keep stops tight. In a market where sentiment flips faster than a memecoin pump, today’s caution could tomorrow’s catalyst. Watch for volume resurgence or BTC’s cue—the next wave awaits.

Source: CryptoSlate

This year’s increases came after rises of 27% in 2024 and 13% in 2023, at a time of global conflicts including in the Middle East and Ukraine.

Source: Theguardian

SoftBank Group said on Wednesday it has agreed to buy the robotics business of Swiss engineering group ABBin a $5.4 billion deal.The deal marks a major push by SoftBank founder and CEO Masayoshi Son into robotics as he expands investing activity after a period of retrenchment.SoftBank, whose forays into robotics include the humanoid Pepper, has investments in the segment including in Berkshire Grey and AutoStore.

The deal means ABB has abandoned its original decision to spin off and separately list the industrial automation business, which competes with Japan's Fanuc and Yaskawa, as well as Germany's Kuka in making factory robots.The decision is the first major move under ABB CEO Morten Wierod, who took charge last year, and comes after the robots business has struggled with falling profitability and sales in recent years.

"ABB and SoftBank share the same perspective that the world is entering a new era of AI-based robotics and believe that the division and SoftBank's robotics offering can best shape this era together," said Wierod in a statement."ABB Robotics will benefit from the combination of its leading technology and deep industry expertise with SoftBank's state-of-the-art capabilities in AI, robotics and next-generation computing," he added.ABB shares were indicated 3% higher in pre-market activity in Zurich after the sale announcement.

SoftBank's shares rose around 1% in afternoon trading following the announcement but were still down 1.57% compared to Tuesday's close.Its shares have surged on a wave of enthusiasm for companies considered beneficiaries of artificial intelligence, more than tripling in the previous six months to hit a record intra-day high of 21,695 yen on Tuesday.The transaction is expected to close in mid-to-late 2026 and generate cash proceeds of roughly $5.3 billion from the divestment, ABB said.

It said the money will be used towards its long-term capital allocation principles, which include investing in organic growth, acquisitions and returning capital to shareholders through dividends and share buybacks.The robotics business, which employs 7,000 people, generated sales of $2.3 billion last year, equivalent to 7% of ABB's total revenues, but ABB saw limited crossover with the rest of its business, which is largely focused on electrification and automation.Robotics has struggled with subdued demand in Asia, with companies delaying capital investments due to economic uncertainty.New installations remained largely unchanged at 542,000 units in 2024, according to the International Federation of Robotics.

Source: Reuters