The recent Bitcoin price has little to do with the recent US government shutdown or the so-called AI tech bubble, according to Crypto analysts.
Many market participants thought that Bitcoin (BTC) – which recently fell to its lowest level in nearly eight months – is still reeling from widespread macroeconomic uncertainty due to the recent US government shutdown, which ended last week.
Others have suggested that concerns about an AI bubble are spilling over into the crypto markets. The Victoria Scholar, investment leader for the interactive investor, recently said:
“Fears of an AI bubble and concerns about the market’s heavy reliance on a handful of tech giants have caused investors to dial back their exposure to speculative assets like Bitcoin.”
However, Onchain analyst Rational Root pushed back on the US shutdown theory during a podcast interview Published on YouTube on Wednesday.
“I can’t attribute the drawdown in Bitcoin all to the government shutdown,” Rational Root said.
Instead, the analyst said Bitcoin’s fall from its all-time high of $125,100 in October was likely due to “too high a level of futures leverage in Bitcoin.”
It is also not afraid of the bubble
Meanwhile, Bitcoin analyst PlanB also dismissed the idea that AI concerns could affect the price of Bitcoin.
“We can remove the AI bubble thesis from the list of reasons bitcoin went 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 the third quarter ended Oct. 26, up 62% from a year ago and beating Wall Street Projects of $ 54.7 billion.
The analyst said that the list of factors is getting “smaller and smaller.”
Just a few reasons for the fall of bitcoin
“Only the 4-year astrological cycle of narrative and delayed global liquidity remains,” said Planc.
“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 run is over, killed by institutional adoption.”
Global liquidity, 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 needs a reset
Rational Root says Bitcoin now has a “clean slate” and a potential opportunity for more upside.
“We’ve actually been three times in these last three years in this three-year bull market, we’ve seen a reset comparable to the levels of the bear markets,” he said. He added that each of these resets “allowed us to move higher.”
“I think it will move to a more gradual structure to be fair,” Root said.
Some market analysts have recently suggested that The end of the US government The shutdown and return to regular legislative sessions could spark an approval of new crypto exchange-traded fund (ETF) approvals by the Securities and Exchange Commission (SEC) in 2026.
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