Despite a significant crash in the tech stock market, particularly affecting Nvidia, analysts remain optimistic about Bitcoin’s future.
The tech industry is witnessing a seismic jolt with the launch of DeepSeek’s AI model, competing with OpenAI’s ChatGPT in a neck-with-neck fashion. The tech stock market has crashed, and ripples have been felt in the crypto market as well. However, analysts remain bullish on Bitcoin (BTC).
The effects of this have rippled across the tech-related stock market, resulting in a historic $600 billion wipeout of the U.S. tech sector, as per The Guardian. Now, President Donald Trump has come out calling this development a “wake-up call” for American industry and called for a renewed drive for innovation.
Nvidia, a widely followed stock that dominates the tech sector with its leadership in AI and computing innovations, fell by nearly 17% in the last 24 hours. The crypto industry has not been spared from the crash, as well. On Jan. 27, BTC fell below $100K, causing the altcoin markets to tank with it.
Interestingly, the AI crypto sector also saw a huge loss– dropping by 12%. Arthur Hayes of BitMEX had already predicted that investors would be moving away from the U.S. market and looking for a haven in global options like crypto.
Now, more analysts have joined him in support of crypto. According to a report by 10x Research, while the crypto market seems turbulent, BTC will revive. The report also states that the current headwind will bring more investors towards BTC and other decentralized assets. Further, Matrixport, a financial hub that operates in the Asian market, also shared the same sentiment.
Bitcoin remains resilient amid Nvidia stock chaos
Markus Thielen, the CEO of 10x Research, says Wall Street-backed Bitcoin ETFs will help BTC maintain low volatility. He highlights BTC’s relationship with the U.S. dollar, saying, “Bitcoin tends to go higher the U.S. dollar goes. It is evidence that more currency is flowing into the U.S., and some of it trickles into Bitcoin.”
Global liquidity, currently at $38 trillion, is driving BTC’s price rather than tech market instability, according to Thielen.
On a podcast, Thielen argues that BTC’s price action is independent of the tech sector. The asset reacts to global liquidity and Federal Reserve policy. Thielen says that Bitcoin ETF inflows returned in the September FOMC meeting “after months of moving sideways”. He added that once the CPI data of Dec. 2024 came in on Jan. 15, 2025, investors were more confident in BTC’s position.
“We had five consecutive days of Bitcoin ETF buying after a period of uncertainty. This followed comments from Fed Governor Christopher Waller after the inline CPI data, indicating a possible rate cut this year, with a slight chance as early as March. His remarks were seen as a vote of confidence, prompting ETF flows to resume.”
While Thielen believes BTC’s price could reach between $130,000 and $190,000 during the current bull market cycle Bitcoin ETFs outflows are telling a different story.
