Nvidia Collapse Could Boost Bitcoin’s 2025 Rally
- Nvidia’s Crash Could Benefit Bitcoin in 2025
- Cryptocurrency IPOs Could Boost BTC Price
- US liquidity risks could affect short term
Nvidia suffered one of the biggest market crashes in history, losing approximately $600 billion in market value in a single day. The decline came after the rapid growth of Chinese startup DeepSeek, we has developed an open-source artificial intelligence that can compete with the industry’s most advanced models. The rapid adoption of this technology has raised concerns about the need for high-performance chips, shaking investor confidence in Nvidia and other semiconductor makers.
At the time of publication, the price of Bitcoin was quoted at US$102.451, up 2.9% in the last 24 hours.
Nvidia shares fell as much as 17% in a single trading session, impacting the technology sector , the as a whole. Companies such as Taiwan Semiconductor and Broadcom also saw declines of more than 14%. Fears that the advance of more affordable AI models would reduce demand for high-cost chips were enough to trigger a sharp selloff in the financial market.
In the cryptocurrency sector, the turmoil was reflected in a 4% drop in the price of Bitcoin, which returned to trading in the $99.000 to $100.000 range. However, analysts believe that Nvidia's crisis could, paradoxically, benefit Bitcoin in the medium to long term. With a possible slowdown in AI investments, inflationary pressures are expected to ease and a more favorable macroeconomic environment for decentralized assets.
TWO LAWS THAT GIVE BITCOIN POWER
1: GRESHAMS LAW: When BAD money enters a system GOOD money goes into hiding. Good money gold and silver have been hiding from FAKE US dollars for years.
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2: ...
—Robert Kiyosaki (@theRealKiyosaki) January 25, 2025
Additionally, there is growing anticipation for a series of initial public offerings (IPOs) from cryptocurrency companies throughout 2025. At least ten of these companies are expected to collectively exceed a market value of $73,9 billion. This movement could provide an additional incentive to keep Bitcoin’s price high, as high valuations are crucial for these companies to achieve their expected valuations. According to experts, these stock market debuts could boost Bitcoin by as much as 50% to 100% over the course of the year, increasing the interest of institutional investors.
Despite the optimistic projections, there are risk factors to consider. The United States’ public debt has reached $36 trillion, a level that could impact global liquidity and trigger market corrections. Some analysts believe that Bitcoin could face short-term corrections before resuming its upward trajectory, possibly testing levels close to $70.000 before rising again.
Amid these uncertainties, investors are closely monitoring Bitcoin’s correlation with the traditional market and changes in the global economy. If the Nvidia crisis does indeed lead to a cut in AI spending and facilitate a more flexible monetary policy, Bitcoin could emerge as one of the big beneficiaries of this new financial dynamic.
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.
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