Bitcoin Boosted by Nvidia’s Slump and Massive Crypto IPO Pipeline

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Bitcoin Boosted by Nvidia’s Slump and Massive Crypto IPO Pipeline

Bitcoin may rise in value when Nvidia stock falls along with other cryptocurrency firm IPO launches according to research experts. 

Nvidia faced a 17% share price drop on January 27 that wiped out $600 billion from its market value becoming America’s biggest one-day loss ever recorded. The market reacted in fear to DeepSeek AI’s new development in China which competition marked against OpenAI’s ChatGPT technology.

Nvidia’s Valuation Drop Seen as Positive for Bitcoin

According to 10x Research analysts this drop in Nvidia’s value means positive things will happen for Bitcoin. Their study advises that when companies need less AI tools they spend less money which leads the Federal Reserve to implement better monetary policy. 

When companies spend less on AI they can use share buyback programs to boost U.S. equity value while easing Fed inflation concerns. The report stated:

“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.”

The market for Bitcoin price breakout looks promising when you combine crypto IPO activities with $100 billion in revenue. The report reveals that multiple major crypto companies want to go public next year which creates strong motivation to keep Bitcoin prices stable. 

At least ten big cryptocurrency companies will release their shares to public markets next year and they will hold a combined market worth of more than $73.9 billion.

Bitcoin’s Strength Key to $100B Valuations for Upcoming Crypto IPOs

The market attempted to raise Bitcoin value before Coinbase’s IPO in April 2021 through financial manipulation. The cryptocurrency IPOs coming up will promote higher Bitcoin prices to uphold false cost increases. The report stated:

“With a pipeline of high-profile crypto “financial” companies aiming to go public this year, inflated valuations will likely depend on maintaining a sky-high Bitcoin price a trend worth watching closely.”

Multiple upcoming IPOs may bring company valuations up by 50% to 100% and generate combined value between $100 billion and $150 billion. If Bitcoin remains strong next year the crypto asset prices will help raise the IPO valuations of these upcoming industry players:

“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.”

Yet U.S. $36 trillion debt ceiling worries make experts believe Bitcoin prices might retest $70,000 before starting the next economic cycle. According to Raoul Pal of Global Macro 

Investor Bitcoin will reach its “local top” above $110,000 in January before returning to prices below $70,000 by February 2023. 

In his November 29 post on X Raoul Pal observed how Bitcoin’s relationship with worldwide liquidity indicates a behavior that might manifest during the following months.

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