Some of the biggest names in crypto are gearing up for Initial Public Offerings (IPOs) in 2025. This creates a strong reason to keep Bitcoin prices high, according to 10x Research.
Analysts believe Bitcoin could get a boost from Nvidia’s recent drop in value and the upcoming IPOs from major cryptocurrency firms. On January 27, Nvidia's shares fell nearly 17%, wiping out almost $600 billion in market value. This was the largest one-day drop in U.S. stock market history. The decline was triggered by concerns over a new AI model from a Chinese company, DeepSeek, which competes with OpenAI’s ChatGPT.
The drop in Nvidia’s valuation is seen as a positive sign for Bitcoin (BTC). A report from 10x Research states that lower spending on AI might help ease inflation. This could lead to a friendlier monetary policy from the U.S. Federal Reserve. The report notes, “Reducing AI spending keeps share buybacks as a key driver of U.S. equity returns and eases inflationary pressures, addressing the Fed’s concerns and making them marginally less hawkish.”
Alongside nearly $100 billion in upcoming IPOs from crypto firms, these factors might set the stage for Bitcoin’s next significant price increase.
Several well-known crypto companies are planning to go public. This gives them a clear incentive to keep Bitcoin prices elevated. At least 10 large crypto firms are looking to IPO in 2025, with a combined valuation of over $73.9 billion.
Bitcoin’s price seems tied to “financial gamesmanship.” There was a significant effort to inflate Bitcoin’s value leading up to Coinbase’s IPO in April 2021. The report adds, “With a pipeline of high-profile crypto ‘financial’ companies aiming to go public this year, inflated valuations will likely depend on maintaining a sky-high Bitcoin price—a trend worth watching closely.”
It’s estimated that these IPOs could increase valuations by 50% to 100% compared to previous private funding rounds. This could potentially push their combined valuation to between $100 billion and $150 billion. The report states, “This substantial value provides a strong incentive to sustain Bitcoin’s rally throughout 2025, as higher crypto asset prices are critical for achieving these inflated IPO valuations.”
However, there’s a warning sign for Bitcoin liquidity. The recent $36 trillion U.S. debt ceiling could lead to a temporary correction, bringing Bitcoin down to around $70,000 before the market picks up again. Bitcoin is expected to hit a “local top” above $110,000 in January. After that, an “interim peak in liquidity” might cause a deeper correction, according to Raoul Pal, founder and CEO of Global Macro Investor. He shared this analysis in a post on X on November 29.
Based on its correlation with the global liquidity index, Bitcoin's right-hand side (RHS) should peak near $110,000 in January. After that, it may drop below $70,000 by February.