Low Risk Appetite in the Crypto Market: Bitcoin Analysis

Low Risk Appetite in the Crypto Market

This week in the cryptocurrency markets, a notable low risk appetite has emerged among investors. Bitcoin has lost 7.1% of its value in the last 24 hours, causing concern among investors.

Galaxy Digital Revises Bitcoin Target

Galaxy Digital has significantly lowered its Bitcoin target for 2025. The company has revised its previous forecast from $185,000 to $120,000. After the liquidations that occurred on October 10, it appears that investor confidence has been shaken, and capital flows are shifting towards alternative investment vehicles like artificial intelligence and gold, putting pressure on the crypto market.

This year, Bitcoin's performance has been more prominently influenced by topics such as artificial intelligence and gold, while according to Galaxy, despite the current abundance of liquidity, investor interest has dissipated. Therefore, the potential for 2025 to be a "hot" year for Bitcoin has diminished.

Changes in Investor Behavior

The capital flow directed towards artificial intelligence infrastructure and data centers has led to gold being viewed as a solid "safe haven" in times of geopolitical risk. These factors are significantly limiting interest in Bitcoin. While Galaxy's research head Alex Thorn noted that Bitcoin's long-term outlook remains "structurally sound," this year's investor movements have been shaped by whale distributions, ETF-related inflows, and declining retail participation.

Significant Developments of the Week

• $1.22 billion exited from Spot Bitcoin (BTC) ETFs, and $507 million exited from Spot Ethereum (ETH) ETFs.
• Credit card giant Mastercard is collaborating with Ripple (XRP) to explore new payment services using the RLUSD stablecoin on the XRPL platform.
• Tokenized stock provider Dinari plans to launch a new blockchain-focused stock index in collaboration with Chainlink (LINK).

Market Status of the Week

Last week, while some tokens like Internet Computer (ICP) drew attention, it was noted that the reserves of exchanges decreased by 31.4%, while the assets of the top 100 wallets increased by 30%. ICP attracted investor interest by providing a return of 170.7% over the past 7 days.

The project founder Alex Gluchowski announced that they are working on a new design that will allow token holders to benefit from network revenues and reduce the token supply in the market. These developments are creating a positive atmosphere among investors.

The information provided here is not investment advice.