Recently, On January 27, Nvidia’s shares dropped nearly 17%, losing $600 billion in value, marking the largest one-day loss in US stock market history. The decline was sparked by concerns over a new AI model from the Chinese company DeepSeek, which competes with OpenAI’s ChatGPT.
What’s important to note here is that, analysts believe that Bitcoin prices might get a boost after Nvidia’s huge drop in value and the upcoming IPOs of prominent crypto firms.
Good News For Bitcoin?
As per a recent report from 10x Research, Nvidia’s valuation drop is seen as positive for Bitcoin. The report suggests that lower spending on AI could help reduce inflation, potentially leading to more favorable monetary policies from the US Federal Reserve.
“Reducing AI spending keeps share buybacks as a key driver of U.S. equity returns and eases inflationary pressures, addressing the Fed’s concerns and making them marginally less hawkish.”
Significant IPO’s Upcoming
The report also notes that with nearly $100 billion in upcoming IPOs from major crypto firms, these factors could set the stage for Bitcoin’s next big price surge. The launch of these IPOs provides a strong incentive to keep Bitcoin prices elevated, according to 10x Research. Notably, at least 10 large crypto firms are planning to go public in 2025 with a total combined valuation of over $73.9 billion.
The report suggests that Bitcoin’s price is often influenced by efforts to manipulate or boost its value, as seen before Coinbase’s IPO in 2021. With several major crypto companies planning to go public this year, keeping Bitcoin’s price high will likely be important to ensure inflated valuations, and this is something to watch closely.
The report estimates that the IPOs could increase valuations by 50% to 100% compared to their previous private funding rounds, potentially reaching a combined valuation of $100 billion to $150 billion.
“This substantial value provides a strong incentive to sustain Bitcoin’s rally throughout 2025, as higher crypto asset prices are critical for achieving these inflated IPO valuations,” it noted.
Temporary Correction For Bitcoin Ahead?
However, the $36 trillion US debt ceiling has raised concerns about Bitcoin liquidity, which could potentially lead to a temporary correction to $70,000 before Bitcoin’s next market rally.
Raoul Pal, founder of Global Macro Investor, predicts Bitcoin will reach a “local top” above $110,000 in January. However, due to a temporary dip in liquidity, he expects Bitcoin’s price to fall below $70,000 by February. His analysis is based on Bitcoin’s correlation with the global liquidity index.
