Cripto-T

According to Foresight News, Lookonchain has reported that a major cryptocurrency investor, identified by the address starting with 0x0ddf, has changed their trading strategy following significant losses. After closing long positions in Ethereum (ETH) and Bitcoin (BTC) with a loss of approximately $6.2 million, the investor has now adopted a bearish stance. They have opened a short position with 2x leverage on 20,000 ETH, valued at around $60.4 million.

Bitcoin’s recent price plunge has little to do with the recent US government shutdown or with the so-called AI tech bubble, according to crypto analysts.

Many market participants had speculated that Bitcoin (BTC) — which recently fell to its lowest level in almost eight months — was still reeling from widespread macroeconomic uncertainty due to the recent US government shutdown, which ended last week. 

Others suggested that concerns about an AI bubble are spilling into crypto markets. Victoria Scholar, head of investment for Interactive Investor, recently said:

“Fears of an AI bubble and concerns about the market’s heavy dependence on a handful of tech giants have caused investors to dial back their exposure to speculative assets such as Bitcoin.”

However, onchain analyst Rational Root pushed back on that US shutdown theory during a podcast interview published on YouTube on Wednesday.

“I wouldn’t contribute the drawdown in Bitcoin all to the shutdown of the government,” Rational Root said.

Instead, the analyst said Bitcoin’s tumble from its all-time highs of $125,100 in October was likely due to “too high levels of futures leverage in Bitcoin.”

It’s not AI bubble fears either 

Meanwhile, Bitcoin analyst PlanB also dismissed the idea that AI concerns may be affecting Bitcoin’s price.

Bitcoin is down 13.90% over the past 30 days. Source: CoinMarketCap

“We can remove the AI Bubble thesis from the list of reasons Bitcoin is down,” PlanC said in an X post on Wednesday, pointing to Nvidia having “very strong earnings.” 

On Wednesday, Nvidia reported record revenue of $57 billion for its third quarter ended Oct. 26, up 62% from a year ago and beating Wall Street projections of $54.7 billion.

The analyst said the list of reasons is getting “smaller and smaller.”

Only a few reasons for the Bitcoin slump remain

“Only the 4-year cycle astrology narrative and delayed global liquidity remain,” PlanC said.

“And the 4-year narrative has a high probability of breaking,” he said, which has been an ongoing debate within the crypto industry in recent times. 

Swan Bitcoin CEO and Bitcoin advocate Cory Klippsten recently told Cointelegraph Magazine that “there is a very good chance that Bitcoin’s famous four-year price cycles are over, killed by institutional adoption.”

Source: zerohedge

Global liquidity, which is often tracked using the M2 money supply, is a common topic of discussion among Bitcoin holders. Strike CEO Jack Mallers recently said, “Bitcoin is the most sensitive to liquidity. It moves first. It’s a truth machine.”

Bitcoin was in need of a reset 

Rational Root said Bitcoin now has a “clean slate” and a potential opportunity for more upside.

“We have actually three times in these last three years in this three-year bull market, we have seen a reset comparable to levels of bear markets,” he said. He added that each one of these resets has “allowed us to move higher.”

“I think it will move in a more gradual structure to be fair,” Root said. 

Some market analysts have recently suggested that the US government’s end to the shutdown and return to regular legislative sessions may spark a surge in new crypto exchange-traded fund (ETF) approvals by the Securities and Exchange Commission (SEC) in 2026.

Magazine: Crypto carnage — Is Bitcoin’s 4-year cycle over? Trade Secrets

According to Odaily, blockchain analyst Yu Jin reported that 5,533 ETH, valued at $16.52 million, were transferred from the SharpLink address (0x70D...13E3) to the Galaxy Digital OTC wallet three hours ago.

Since early yesterday, a total of 10,975 ETH, worth $33.54 million, have been moved from SharpLink to Galaxy Digital.

According to Odaily, during the Federal Reserve's October meeting, officials expressed increasing disagreement over whether to implement a rate cut next month. This division has led to a growing number of policymakers, potentially forming a slight majority, feeling uneasy about a rate reduction in December. Several participants assessed that if economic developments align with their expectations for the upcoming intermeeting period, a further rate cut in December might be appropriate. Many attendees indicated that maintaining the target range unchanged for the remainder of the year could be suitable based on their economic outlook. The term 'many' encompasses a larger number than 'several,' suggesting a closely contested vote in December.