Behind Bitcoin's Sharp Decline: A Reversal in the Three Major Demand Drivers for ETFs, DATs, and Stablecoins, According to NYDIG Report

Greg Cipolaro from NYDIG, a major US cryptocurrency investment firm, pointed out that the structural tailwinds supporting Bitcoin's (BTC) rise—ETFs, cryptocurrency treasuries (DATs), and stablecoins—have reversed, turning into headwinds following the liquidation of over $19 billion on October 10.

The sharp drop in Bitcoin prices is not merely a matter of market psychology, but rather due to structural factors where key sources of demand have simultaneously contracted.

Initially, the successful Bitcoin spot ETFs supported a bullish market with billions of dollars in inflows, but this trend has abruptly reversed, and now outflows...