Bitcoin's recent decline is attributed to a mix of factors, according to Greg Cipolaro, Global Head of Research at NYDIG. Key influences include the AI sector drawing funds away from crypto, as investors prepare for major tech IPOs such as SpaceX, OpenAI, and Anthropic. Additionally, the U.S. Treasury's seizure of $1 billion in Iranian-linked crypto assets has heightened concerns over government intervention.
Cipolaro also highlighted the renewed focus on quantum computing threats and the psychological impact of Strategy's sale of 32 BTC. On-chain metrics reveal several indicators nearing historical lows, with the MVRV ratio at 1.2 and the profit-generating supply ratio below 50%. Despite a 53% retracement, which is less severe than past cycles, the market's behavior suggests either a shift due to institutional adoption or a delay in reaching a capitulation phase.
NYDIG Attributes Bitcoin Decline to Multiple Factors Including AI and Tech IPOs
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