VanEck Analyst: Bitcoin's Recent Decline Lacks Clear Catalyst
Matthew Sigel, head of digital asset research at VanEck, noted that Bitcoin's recent drop to $60,000 lacks a single catalyst, complicating predictions for a market bottom. Unlike previous crashes with clear triggers, this decline is influenced by multiple factors, including a collapse in leverage, forced miner sales, receding AI hype, and concerns over quantum computing. The typical four-year bull-bear cycle also plays a role, as investors anticipate and react to these patterns.
The market has seen significant deleveraging, with futures open interest plummeting from $90 billion in October to around $49 billion, a 45% reduction. Additionally, skepticism about the profitability of AI investments has impacted Bitcoin miners. Despite rising discussions on quantum computing, Bitcoin developers downplay its immediate threat. The four-year cycle remains a psychological factor, with the halving event influencing investor behavior and market phases.
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