Analysts Say BTC’s Decline Isn’t Linked to U.S. Shutdown or AI Fears
According to top analysts, the latest drop in BTC’s price, which brought it to its lowest point in almost eight months, is not due to worries about the economy later than the U.S. government shutdown or worries that have spread from the .
Even though some people think that these macro events were affecting the , many people in the sector have pointed to technical and market-specific reasons for the price drop.
Leaders in The Industry Question The Story
, who is in charge of investments at Interactive Investor, said that people are worried about the AI bubble and how the market depends on a few large tech companies.
However, Rational Root, a well-known on-chain analyst, downplayed the shutdown’s role in a recent podcast, saying, “I wouldn’t attribute the drop in BTC to the shutdown of the government,” and suggested that high levels of futures leverage in BTC trading were a more significant factor.
Futures Leverage and Liquidity Are significant
Analysts say that too much leverage in futures holdings is probably one of the reasons why the price went down. When these leveraged bets are unwound, prices often fluctuate more during times of high volatility.
Analyst PlanB agreed with this view and dismissed the idea of an AI bubble. He also pointed out that strong earnings show that tech sector concerns have not directly affected digital assets.
A Shortening List of Market Drivers
, another person who writes about the crypto market, said that the list of possible reasons for BTC’s drop is getting shorter and shorter. The only things that are still being talked about are the four-year BTC price cycle and changes in global liquidity.
PlanC said, “Only the 4-year cycle astrology narrative and delayed global liquidity remain.” This shows that there is still debate in the industry over how long cyclical market patterns will persist in BTC’s period of greater institutional use.
Calls for a Market Reset and Fresh Upside
Rational Root that the drop in BTC’s value may not be a setback but rather a “clean slate” for future growth. The analyst noted that resets like this in the market during the past three years have usually led to upward momentum.
He said, “Each one of these resets has allowed us to move higher.” The current drop may assist reduce excessive debt and lay the groundwork for future increases.
Some analysts have also said that the recent end of the U.S. government shutdown could assist return things to normal in Congress, potentially leading to further approvals in the next few years.
The changing landscape and the ongoing appraisal of BTC’s price cycle dynamics show that the story in crypto analytics is changing. Market structure and liquidity are now considered the main determinants that will guide BTC’s next phase.
