Purpose of Proof of GPU Crypto Cycle and on-chain performance audits is to eliminate trust issues in open hardware marketplaces, allowing people to use them without fear.
Fire Hustle, a renowned crypto expert, says traders are focusing on the wrong things. Many people think that the reason for Bitcoin’s price drop and altcoins’ stagnation is a bad market cycle or a lack of institutional interest.
But he says the real reason is the liquidity squeeze in the US, which has impacted risky assets. Now, accordingly, this pressure is gradually decreasing, which can be a good thing for the market.
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Bitcoin Trades Like High-Growth Tech As Liquidity Dries Up
Fire Hustle shared another interesting point highlighted by macro investor Raoul Pal. According to him, Bitcoin’s price is moving in a similar way to the stocks of SaaS companies like Salesforce and Zoom.
In the video, Fire Hustle said that the charts for both look almost exactly the same. This means that crypto isn’t in a different or worse situation, but rather, it’s behaving like assets that fall into the riskier and higher-growth categories.
According to his explanation, liquidity in the US had decreased. This happened because of two government shutdowns and the end of the Federal Reserve’s lending programs.
When the U.S. Treasury replenished its cash balance in July and August, new money was not flowing into the system. This forced markets to operate with limited liquidity. Risky assets, such as Bitcoin and software company stocks, were the first to be affected. On the other hand, the price of gold rose sharply, and more money flowed into it.
According to Fire Hustle, even after the second shutdown, the Treasury continued to accumulate money and reduce spending, which prolonged the liquidity crunch.
Raoul Pal says this was the last major liquidity squeeze. Bitcoin’s fall to around $59,000 according to Fire Hustle and then its return to around $70,000 is likely a signal that the market has formed its temporary bottom.
Liquidity Wave Meets AI Infrastructure: Nodexo On Bittensor
The analyst says that instead of focusing solely on Bitcoin’s recovery, one should look at projects that could yield greater profits in the future, especially if more money comes back into the market.
In this regard, he cites Nodexo as an example. It’s part of Bittensor’s decentralized AI network and its job is simple: provide GPU and CPU power to people, but with proper verification.
According to the market expert, the biggest issue is trust. When you rent GPUs from AWS or Google Cloud, the system is reliable. But in an open network, you rely on unknown actors who may overestimate their hardware’s power or provide false information.
Nodexo has addressed this problem with “Proof of GPU v3.” This system requires GPUs to continuously run standard tests. The network knows what the expected results and speeds are. If performance doesn’t match or the same performance is observed in different locations, the system detects fraud or overselling.
The compute work is run in an isolated and secure environment. This protects the hardware owner’s data, as well as the user’s code or AI training data.
The results of hardware checks and internet speed tests are recorded and saved on Ethereum Layer 2. This creates a permanent record of every action that can be verified later.
The network also has its own token system called alpha tokens. These tokens are not used for speculation in Nodexo, but rather for purchasing compute power. Users spend tokens in exchange for processing power, and those tokens are withdrawn from the system.
Why This Matters
The main point of the video is that crypto recent decline doesn’t mean the entire sector has failed. Analysts believe it was merely a temporary cash shortage, which impacted risky and high-growth projects the most.
If Raoul Pal predictions are correct and liquidity is slowly returning due to changes in banking regulations, government spending, and future interest rate cuts then money could return to the market. But this money won’t go to every project. The focus will be more on projects with real use and earning models, not just hype or stories.
In this context, Nodexo has been cited as a strong example of the intersection between AI and crypto cycle. However, analysts repeatedly point out that this is not financial advice and that crypto remains highly risky.
The simple point for investors is that simply looking at price charts is not enough. They should also monitor the flow of money in the market, i.e., liquidity. It’s also important to understand which projects are simply operating on short-term hype and which are solving real problems, such as trusted decentralized computing.
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People Also Ask – Crypto Cycle:
Is the analyst saying the crypto cycle is over?
No. They say the crypto cycle isn’t broken. The recent decline was due to a lack of money in the system, not a failure of the crypto structure itself.
What is the biggest risk?
If liquidity decreases again or doesn’t return for a long time, recovery could be slow. Projects like Nodexo also involve technical, market, and token risks.
How is Nodexo different from traditional cloud?
It doesn’t replace AWS or Google Cloud. It provides decentralized computing where GPU performance is verified on the blockchain and has an open, token-based marketplace.
Do I need to understand crypto to use Nodexo?
No. Like Fire Hustle, the NodeXO Agent handles blockchain work in the background, allowing users to focus solely on the hardware and workload.
