The recent increase in the popularity of the startup of artificial intelligence based in China (AI) Deepseek caused major turbulence in the cryptography market. Bitcoin (BTC) and other cryptocurrencies were faced with significant reductions after the in-depth rise, highlighting the growing correlation between the breakthroughs of AI and the prices of cryptography.
Read also: Dogecoin: a cryptographic revolution or a risk for financial stability?
Deepseek triggers market sale
On January 20, 2025, Deepseek launched his Open Source model, R1. In one week, the Chatbot AI won a huge traction, quickly exceeding the OpenAi Chatppt as the best rated free appliance on the Apple App Store. The thrust of the application has drawn the attention of technology and investors, aroused a larger sale on the market.
The cryptography market was not immune to this sudden market change. Bitcoin Price, who had climbed over 105,000 USD earlier in the week, dropped under 98,000 USD before resorting. This rapid drop was reflected on the stock market, the Nasdaq, heavy with technology, losing more than 3% in value.
Current Bitcoin price update
Bitcoin continues to show regular performance on the market. Here are the latest data:
- Bitcoin Price (AUD): $ 164,968.97
- 24 Hours Change: + 3.1%
- Trading volume 24 hours a day: $ 86.7 billion
- Market capitalization: 2 dollars
Bitcoin Price (USD):
- Current price: $ 103,224
- 24 Hours Change: + 3.1%
- Market capitalization: $ 2.05
- Fully diluted assessment: $ 2.05
- Trading volume 24 hours a day: $ 71.06 billion
Bitcoin Performance:
- 1 hour: + 0.1%
- 24 hours: + 3.1%
- 7 days: + 1.2%
- 14 days: + 8.5%
- 30 days: + 8.7%
- 1 year: + 141.7%
The price of Bitcoin has experienced a solid increase in the past 24 hours, with continuous rise in the month and last year. Keep an eye on fluctuations because the market reacts to new developments.
Figure 1: Bitcoin Price Surge in the last 24 hours
Deepseek’s rise in power and its impact on technological stocks
Deepseek’s popularity has raised significant concerns among investors. The company said its model only cost $ 5.8 million to train – an impressive figure compared to the OpenAi of $ 17.9 billion invested in its models. In addition, Deepseek allegedly uses fewer chips to train his models, claiming to produce faster and more effective results.
This has led to a sharp drop in American technological shares, in particular NVIDIA (NVDA), which has seen its market capitalization lose more than $ 600 billion. The drop in equity prices has contributed directly to the drop in the cryptography market, because the correlation between traditional technological actions and the prices of cryptography continues to grow.
An opportunity “buy the dip”?
Despite volatility, some analysts consider the recent market withdrawal as a potential opportunity. Geoffrey Kendrick, global manager of digital asset research at Standard Chartered Bank, remains optimistic. In a report, Kendrick said: “Buy DIP”. He argued that a large part of the descending movement had already been assessed on the market and that the recent Bitcoin sale could point out the end of the current correction.
Kendrick had previously warned against a potential correction of 10% to 20%, attributing it to too zealous expectations surrounding Trump’s decree in the crypto. However, he thinks that night sale has probably represented a large part of this correction.
Despite short -term potential pain, Kendrick stressed the rapid drop in yields of the American treasury as an indicator that the worst could be finished. He also noted that institutional asset flows would probably increase in the coming weeks and months, providing support for the cryptography market.
Booming altcoins in the middle of Bitcoin difficulties
While Bitcoin Price remains the focal point for many crypto investors, a number of altcoins showed impressive gains in 2025. Several high altcoins, notably Solana (ground), XRP (XRP) and ChainLink (Link), have Already jumped from 30% to 50% this year. These cryptocurrencies could surpass bitcoin if the market continues to promote alternative assets.
Solana: a promising Altcoin
Solana was dazzling, becoming the fifth largest cryptocurrency by market capitalization. In January 2025, Solana’s price increased from $ 185 to $ 295 in just one week. At the time of writing the editorial staff, Solana is negotiated at around $ 242 and some analysts predict that it could reach $ 400 by the end of the year.
A major catalyst for this growth is the potential approval of a funded fund (ETF) on cash for Solana. If this happens, analysts estimate that $ 6 billion could circulate in Solana in the next 12 months. The increase in user activity, especially in rooms, based on Solana and decentralized exchanges, further strengthens the perspectives of the room.
XRP: Regulatory clarity fueling growth
XRP also experienced significant growth in 2025. The medal jumped up to date with 53% year -old, driven by improving the regulatory environment for Ripple, the company behind XRP. With the former head of the dry, Gary Gensler, who withdrew, Ripple’s regulatory prospects have become much more favorable.
Chainlink: solid fundamentals in the middle of recovery
Chainlink, a leader in blockchain data oracles, also shows signs of strong recovery. Despite the underperformance in recent years, Chainlink’s position as a key director of decentralized finance (DEFI) gives it high long-term potential. Chainlink’s involvement in the tokénisation of active world active people (RWAS) is another promising field of growth, RWA tokénisation which should be a market opportunity for several dollars in the years to come.
The training effect: price of cryptography and technological actions
As the recent sale shows, the cryptography market is increasingly affected by the wider technological market. The rise in power of Deepseek and its impact on the main technological actions highlights the sensitivity of the price of cryptography to technological developments. If the Deepseek AI model continues to disrupt the market, we can see new drops of Bitcoin and other cryptographic assets, especially if technological stocks remain under pressure.
However, the drop in cryptography prices provides investors with the opportunity to buy these assets at a lower price. If the wider market is restored and institutional entries continue, bitcoin and altcoins like Solana, XRP and Chainlink may experience significant growth in the coming months.
Conclusion: Careful optimism for crypto
The current market volatility, drawn by the rise of Deepseek and its impact on technological actions and the prices of cryptography, has led to considerable uncertainty. However, analysts like Kendrick remain optimistic, believing that the drop in Bitcoin prices has an opportunity to buy for those who wish to resist the storm. With the growing institutional interest and the continuous development of blockchain technology, the long -term perspectives of the crypto remain promising.
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