Some of the largest crypto firms are planning IPOs in 2025, which creates a “clear incentive to keep Bitcoin prices elevated,” according to 10x Research.
Bitcoin prices may see a boost from Nvidia’s massive valuation drop and a pipeline of Initial Public Offerings (IPOs) from prominent cryptocurrency firms, analysts suggest.
Shares in chip maker Nvidia closed down nearly 17% on Jan. 27, wiping out almost $600 billion in value — the largest one-day value drop in US stock market history — triggered by panic over Chinese AI firm DeepSeek’s latest model, which rivals OpenAI’s ChatGPT.
The decline in Nvidia’s valuation is considered a “bullish development” for Bitcoin
BTC
$102,560
, according to a Jan. 27 report by research firm 10x Research. The report suggests that reduced spending on AI could help ease inflation, which could lead to more favorable monetary policy from the US Federal Reserve:
“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.”
Combined with the upcoming almost $100 billion of IPOs from crypto firms, these factors may create conditions for Bitcoin’s next significant price breakout, the report added.
Crypto IPO pipeline to drive Bitcoin’s 2025 rally
Multiple high-profile crypto firms plan to go public through an IPO, which creates a “clear incentive to keep Bitcoin prices elevated,” 10x stated.
At least 10 large crypto firms are planning to go public in 2025 with a total combined valuation of over $73.9 billion.
Bitcoin’s price is tied to “financial gamesmanship,” illustrated by the “significant effort made to inflate Bitcoin’s value leading up to Coinbase’s IPO in April 2021,” the report stated, adding:
“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.”
The report estimates that the IPOs could increase valuations by 50% to 100% compared to their previous private funding rounds, potentially reaching a combined valuation of $100 billion to $150 billion:
“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, the $36 trillion US debt ceiling recently flashed a critical warning sign for Bitcoin liquidity, which may experience a temporary correction to $70,000 before the next leg up in the market cycle.