Jordi Visser: This Is the Real Reason Behind Bitcoin’s Decline—What Does It Take for a Rally?

Jordi Visser, a seasoned Wall Street investor, assessed the sharp declines in Bitcoin (BTC), stating that the primary reason for the selling pressure in the cryptocurrency market is macroeconomic conditions and liquidity constraints. Speaking on Anthony Pompliano’s podcast, Visser specifically mentioned that the Fed’s monetary policy and rising bond yields are putting significant pressure on Bitcoin.

Commenting on Bitcoin’s decline to the $65,000 level, Visser argued that investors do not sufficiently grasp how interconnected the cryptocurrency market is with macroeconomic developments. He pointed out that US two-year Treasury yields rose by approximately 35 basis points in a week, the largest weekly increase since 2022.

Visser noted that Bitcoin and gold have exhibited similar price movements since March, stating that both assets have been negatively impacted by high interest rates and tightening liquidity conditions.

When Could the Bitcoin Rally Begin?

Visser stated that Bitcoin’s price movements are evaluated based on two fundamental dynamics: technological innovations and global liquidity conditions.

According to the analyst, Bitcoin can be considered a technology investment that can benefit from growth in the artificial intelligence sector, but it also acts as an asset sensitive to interest rate and liquidity developments.

Visser stated that easing inflationary pressures could be a significant turning point for Bitcoin. Noting the slowdown in the rate of increase in oil and memory chip prices, the analyst believes that these developments could positively impact inflation data in the coming period.

However, Visser stated that FED officials have taken a more hawkish stance on inflation than expected, and he assessed that at least two more interest rate hikes could be seen in the market. The analyst added that as inflation data begins to decline, liquidity conditions could turn back in favor of Bitcoin.

Visser believes a more favorable liquidity environment could emerge next year, but argues that a change in the Fed’s stance on tight monetary policy is crucial for the rally to begin.

Visser: Tokenization and Artificial Intelligence Present a Huge Opportunity for Bitcoin

Regardless of short-term price movements, Visser maintained his optimism about Bitcoin’s long-term future, arguing that tokenization and AI-powered economic activities would accelerate new capital inflows into the cryptocurrency market.

Visser summarized his view on this matter with the following words:

“Artificial intelligence is inevitable. Tokenization is inevitable. Trading through AI agents is also inevitable.”

The analyst noted that the traditional financial system holds approximately $900 trillion in assets, while the cryptocurrency market constitutes a very small fraction of this, and that concrete use cases need to develop for this capital to flow into the blockchain ecosystem.

According to Visser, the tokenization of assets will be the main driving force behind this transformation. He predicts that with artificial intelligence agents taking on a greater role in economic transactions, Bitcoin could become one of the key collateral assets of the digital financial system.

How Will the Delisting of Strategy Affect Bitcoin?

The possibility of removing Strategy (formerly MicroStrategy) from some stock market indices was also discussed during the program.

Visser acknowledged that negative developments in Strategy shares could create short-term price pressure on Bitcoin. He said the main reason for this was that investors viewed Strategy and Bitcoin as closely related assets.

However, according to the analyst, Bitcoin’s long-term rise isn’t solely dependent on Strategy’s performance. The fact that pension funds, insurance companies, mutual funds, and other large institutional investors believe in the economic value of blockchain technology is far more important in terms of attracting new capital to the market.

*This is not investment advice.