Why bitcoin (BTC) is falling: AI, tech IPOs, quantum, Strategy sale fears all converge, NYDIG says
Bitcoin’s drop below $60,000 likely reflects several pressures rather than one cause. NYDIG’s Greg Cipolaro said crypto is facing overlapping headwinds: capital is rotating toward the AI trade, which now dominates growth investing; investors may be building cash ahead of a likely wave of major tech IPOs; and crypto is dealing with sector-specific concerns, including U.S. government seizures of Iranian-linked assets, renewed quantum-computing security worries, and Strategy’s small bitcoin sale, which mattered more psychologically than in supply terms. He said these factors help explain weaker prices despite no clear deterioration in adoption or network activity. Onchain signals are approaching historically bullish bottom zones: MVRV has fallen to about 1.2 and less than half of supply is in profit. Still, the drawdown is milder and shorter than past bear markets, suggesting either institutional demand has changed bitcoin’s cycle or the market has not fully capitulated yet.
