Technology stock markets have been on a tear recently, with Nvidia shares down 17% in the past 24 hours, wiping $600bn off the US market, according to a report in The Guardian. Despite the market volatility, analysts still expect Bitcoin (BTC) to recover soon, benefiting from global economic factors.
On January 27, Bitcoin fell below $100,000, sending the cryptocurrency market into a tailspin, including a 12% drop in the AI-related cryptocurrency sector. But many experts believe that Bitcoin will continue to attract investment despite these volatility.
A recent report from 10x Research suggests that Bitcoin will benefit from current market movements, with investment flows expected to increase towards decentralized assets as a safer alternative amid the ongoing instability in the tech sector. The report added that global liquidity, currently at $38 trillion, will be the determining factor in determining Bitcoin’s price direction, rather than the volatility of the tech market.
Marcus Thielen, CEO of 10x Research, noted that Wall Street-backed ETFs would help reduce Bitcoin’s volatility, enhancing its long-term value stability. He added that Bitcoin is closely linked to the US dollar, and tends to rise as the value of the dollar increases, reflecting more liquidity flowing into the digital asset.
Concluding his report, Thielen emphasized that Bitcoin's movement is mainly influenced by global liquidity and the monetary policies pursued by the US Federal Reserve, which puts Bitcoin in a strong position to benefit from the ongoing global financial flows.
