Bitcoin’s Drawdown Shouldn’t Be Blamed On Us Shutdown Or Ai: Analysts

An onchain analyst said every time Bitcoin has seen a plunge like this, it has “allowed us to move higher.”

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:

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.”

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

“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.

Source: CoinTelegraph