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- NYDIG's head of research, Greg Cipolaro, believes that a combination of factors contributed to Bitcoin's decline.
- Strong demand for AI stocks, US authorities' seizure of Iranian cryptocurrency, the quantum threat, and Strategy's sell-off have caused investor panic.
Bitcoin's fall below $60,000 has prompted investors to consider possible causes. NYDIG Research Director Greg Cipolaro believes there are several.
According to him According to, last week Bitcoin and the crypto market as a whole have been faced with several interconnected factors that continue to put pressure on prices.
Trading stocks of AI-related companies is high on his list because, one way or another, Bitcoin is competing for capital with this sector. As AI-related stocks surge, investors are shifting capital out of cryptocurrencies and into equities.
Companies like SpaceX, OpenAI, and Anthropic are currently in the spotlight. The IPOs of some of these companies are prompting institutional investors to raise funds and reduce existing positions, primarily in risky assets, including cryptocurrencies.
Cipolaro also highlighted statement Treasury Secretary Scott Bessent said US authorities had confiscated approximately $1 billion worth of Iran-linked cryptocurrencies. This led to concerns about the unreliability of digital assets.
In addition, the threat of quantum computing has once again become a topic of discussion following the publication of a new paper showing that the computing power needed to attack cryptographic systems will become available sooner than expected.
Finally, the selling bitcoins Strategy's (MSTR) sale of 32 BTC worth $2,5 million was perceived as overly emotional. The company had been one of the most reliable buyers in the market for years, so the idea that it might start selling BTC caused panic.
"Considering these events individually, none of them seems sufficient to trigger a major correction in Bitcoin," Cipolaro wrote. "Taken together, they help explain why price momentum has weakened despite the lack of obvious deterioration in network performance."
The expert noted that the decline that occurred was relatively small (53%), which is significantly less than the 75-90% observed in previous cycles.
The previous three Bitcoin bear markets lasted about a year from peak to trough, with the exception of the first-ever bear market, which ended in 163 days in 2011. 
NYDIG data
Blockchain data suggests that the market has undergone a significant reset, Cipolaro concluded.
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