The crypto market is unpredictable, and Nvidia’s drop along with rising crypto IPOs might help push Bitcoin prices higher. Let’s see how.
Nvidia Slump: Could Be the Catalyst Bitcoin Needed
On January 27, shares of the chip maker Nvidia took a nearly 17% slide, wiping off $600 billion in market value. The heavy plunge was due to concerns over an emerging AI model from the Chinese company DeepSeek, which would compete with the OpenAI-developed ChatGPT. The sharp decline in Nvidia’s valuation is not only a shock to the tech world but could also play a role in boosting Bitcoin’s value.
According to research from 10x, the slump could actually be “bullish for Bitcoin.” The rationale is connected to how a decrease in AI spending may ease inflationary forces that may compel the U.S. Federal Reserve to present more benign monetary policies. Put differently, a decline in inflation will embolden the Federal Reserve to loosen the policies, which have been sympathetic to higher prices of Bitcoin in the past.
The $100 Billion Crypto IPO Pipeline
Another key driver for Bitcoin prices would be the rush of cryptocurrency firms set to float with initial public offerings in 2025. The companies already have a valuation of over $73.9 billion and are going to make waves in the crypto market. At an estimated combined valuation of $100 billion to $150 billion, this too might propel Bitcoin prices further.
Companies have a strong reason to keep Bitcoin prices high because of IPOs. Just like Coinbase’s IPO in April 2021, there is a big effort to raise Bitcoin’s value before major firms go public. The logic is simple: a higher Bitcoin price makes the crypto market look better, boosting investor confidence and increasing company values.
🚨NEWS🚨
— Markri (@markry99) January 28, 2025
Nvidia slump and $100B crypto IPOs could fuel Bitcoin rally
Some of the largest crypto firms are planning IPOs in 2025, which creates a “clear incentive to keep Bitcoin prices elevated,” according to 10x Research.https://t.co/gOo3wJNSzo
Challenges Ahead: Bitcoin’s Liquidity and Market Correction.
Bitcoin has a bright future, but there are some challenges. Recently, concerns about the $36 trillion U.S. debt could reduce Bitcoin’s liquidity. This might cause a short-term price drop, possibly below $70,000, before the next market rise.
Analyst Raoul Pal predicts that Bitcoin could hit a “local top” of over $110,000 by January before peaking in interim liquidity. But that could be followed by a short-term price dip, which would then be followed by a stronger recovery.
Nvidia’s recent drop and big crypto company IPOs could set the stage for Bitcoin’s next big rise. There are challenges ahead, but Bitcoin’s trend still looks positive. As the crypto market changes, everyone is watching to see if these factors spark a new rally.
