Alex Thorn, Director of Research at Galaxy Digital, stated that despite the recent sharp decline, the structural bull cycle in the cryptocurrency market remains 0 believes the next major rally will be fueled by AI investments, stablecoin growth, and asset tokenization. “AI spending is being supported by tech giants with strong balance sheets and government 1 are strengthening on-chain payment infrastructure, and tokenization is now moving from pilot to real-world use,” Thorn 2 recent cryptocurrency crash disrupted the October rally known as “Uptober.” Over $19 billion in leveraged positions were liquidated that day, while some altcoins lost between 50% and 75% of their value in 3 briefly fell to $102,000 on October 10 from its peak of $126,300 on October 6.
Ethereum, meanwhile, fell from a record high of $4,955 to $3,500. Solana (SOL) fell around 25%. Galaxy Research analyst Thad Pinakiewicz noted that the crash was caused by “high leverage, low order book depth, and a single macro news trigger.” Exchanges’ automatic deleveraging (ADL) mechanisms further squeezed 4 said that despite short-term fluctuations, there remains bullish potential for BTC, ETH, and SOL in the medium 5 noted that risk appetite weakened in mid-October, amplified by the decline in microchip stocks, the Fed's hawkish rhetoric, and geopolitical tensions. Conversely, the record highs for gold and silver reflect investors' tendency to avoid 6 News: Are Bitcoin Miners Now Abandoning BTC to Work on Artificial Intelligence?
Industry Members Respond While some investors argue that AI investments are beginning to “bubble,” Thorn 7 analyst argues that the current situation differs from the 1999 dot-com bubble because today's investments are coming from giant tech companies, not 8 example, moves like BlackRock and Nvidia’s $40 billion acquisition of Aligned Data Centers, Meta’s new $1.5 billion data center deal, Microsoft’s Nscale collaboration, and Google’s OpenAI-Coreweave deal stand out as real cash investments in AI infrastructure. Furthermore, US government support for AI is seven times higher than internet investment in the 9 $45 billion in incentives and $3.3 billion in AI R&D funding under the CHIPS Act demonstrate the strategic importance of this 10 to Thorn, AI could reach the scale of a new “Space Race” or “Manhattan Project.” “Markets rise by climbing the wall of worry.
We're at that wall right now,” Thorn concluded. *This is not investment 11 Reading: Did the Recent Declines Terminate the Bull Market, or Is the Structure Preserved? Here’s the Expert Opinion
Story Tags

Latest news and analysis from BitcoinSistemi