Nvidia's $600B drop and crypto IPOs could boost Bitcoin
Bitcoin (CRYPTO:BTC) may experience a surge in value due to Nvidia's recent valuation decline and a series of upcoming cryptocurrency Initial Public Offerings (IPOs), according to analysts.
On January 27, Nvidia shares plummeted nearly 17%, resulting in a staggering loss of approximately $600 billion in market capitalisation, marking the largest single-day drop in U.S. stock market history.
This decline was triggered by concerns surrounding competition from the Chinese AI firm DeepSeek, which has introduced a new model that poses a significant threat to Nvidia's market dominance.
The report by 10x Research indicates that this drop in Nvidia's valuation could have positive implications for Bitcoin.
Analysts suggest that decreased spending on artificial intelligence may alleviate inflationary pressures, potentially leading to more favorable monetary policies from the U.S. Federal Reserve.
“Reducing AI spending keeps share buybacks as a key driver of U.S. equity returns and eases inflationary pressures,” the report states.
In addition to Nvidia's slump, the anticipated IPOs from major crypto firms could create a strong incentive to maintain elevated Bitcoin prices.
At least ten prominent cryptocurrency companies are expected to go public in 2025, with combined valuations exceeding $73.9 billion.
10x Research notes that these IPOs could inflate valuations by 50% to 100%, leading to total valuations between $100 billion and $150 billion.
This scenario creates a compelling reason for these firms to keep Bitcoin prices high as they aim to achieve inflated valuations during their public offerings.
However, analysts caution about potential liquidity risks associated with the growing U.S. public debt, which may lead to temporary corrections in Bitcoin's price.
Raoul Pal, founder of Global Macro Investor, predicts that Bitcoin could reach a local top above $110,000 before experiencing a correction down to around $70,000.
At the time of reporting, the Bitcoin (BTC) price was $101,151.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
MoneyGram Launches MoneyGram Ramps, a Crypto API Service for Developers
Bitcoin ETFs See $675M Inflow, Ethereum Follows Strongly
Bitcoin spot ETFs gain $675M inflow on May 2; Ethereum ETFs also surge with $20M net inflow, both showing zero outflows.Ethereum ETFs Follow the TrendWhat It Means for Crypto Markets

Cardano ETF Could Send ADA Price to $3
Cardano ETF is expected soon and could push ADA to $3 and beyond, marking a historic moment for the blockchain project.Could ADA Hit $3 or More?Why Institutions Are Watching Cardano

Circle Expands UAE Operations With Abu Dhabi Regulatory Approval and Hub71 Partnership

Trending news
MoreCrypto prices
More








