Low Risk Appetite in the Crypto Market: Bitcoin Analysis

Low Risk Appetite in the Crypto Market

This week in the cryptocurrency markets, there is notable low risk appetite among investors. Bitcoin has decreased in value by 7.1% in the last 24 hours, raising concerns among investors.

Galaxy Digital's Bitcoin Target Revision

Galaxy Digital has significantly lowered its target for Bitcoin for the year 2025. The company has revised its previous estimate from $185,000 down to $120,000. Following the liquidations that occurred on October 10, investor confidence seems to have been shaken, and capital flows are being directed towards alternative investment vehicles such as artificial intelligence and gold, putting pressure on the crypto market.

This year, Bitcoin’s performance has been more closely associated with topics like artificial intelligence and gold, while according to Galaxy, despite the current abundance of liquidity, investor interest remains scattered. As a result, 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 strong “safe haven” in geopolitical risks. These factors significantly limit interest in Bitcoin. Although Galaxy’s research chief, Alex Thorn, states 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.

Important Developments of the Week

• Spot Bitcoin (BTC) ETFs saw an outflow of $1.22 billion, while Spot Ethereum (ETH) ETFs experienced an outflow of $507 million.
• Credit card giant Mastercard is collaborating with Ripple (XRP) to evaluate 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, some tokens like Internet Computer (ICP) drew attention, while exchange reserves decreased by 31.4%, with the largest 100 wallets increasing their holdings by 30%. ICP provided a return of 170.7% in 7 days, capturing the interest of investors.

Project founder Alex Gluchowski announced that token holders will be able to benefit from network revenues and that he is working on a new design that will reduce the token supply in the market. These developments create a positive atmosphere among investors.

The information provided here is not investment advice.