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Steve Muchoki
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Key Notes
- The rise of Chinese DeepSeek in AI despite the US chips sanctions has significantly shaken the Western tech stock perception, thus impacting the crypto in return.
- Robert Kiyosaki expects Bitcoin and the crypto to boom while the stock market crash escalates in the coming weeks.
The total crypto market valuation, led by Bitcoin (BTC), dropped over 9% in the last 24 hours to hover around $3.4 trillion on Monday, January 27, during the early European session. More than $849 million was rekt from the crypto market in the last 24 hours, with around $790 million invoking long traders.
The sudden crypto sell-off has been exacerbated by Bitcoin’s bearish sentiment in the daily time frame. Furthermore, Bitcoin price BTC $82 872 24h volatility: 1.4% Market cap: $1.64 T Vol. 24h: $11.95 B , against the US dollar, has been forming a potential double top coupled with a bearish divergence of the daily Relative Strength Index (RSI).
Crypto Market Reacts to Tech Stock Selloff Caused by Unexpected Advances by China’s DeepSeek
Amid the ongoing tech war between China and the United States, the unexpected advances of DeepSeek, a Chinese artificial intelligence (AI) lab that develops open-source large language models, has caught the Silicon Valley market by huge surprise. Notably, Chinese DeepSeek built its AI’s LLM in less than 2 months using outdated chips for less than $6 million.
In comparison, OpenAI took years and spent more than $17 billion to build with the support of the latest chips by Nvidia Corporation (NASDAQ: NVDA). Interestingly, DeepSeek has outshined the latest version of ChatGPT.
As a result, the perceived reality in the AI and crypto industry was significantly impacted, with the confidence in the US tech giants likely to crumble. Moreover, the correlation between the crypto market and major global indexes remains positive.
According to Robert Kiyosaki, a popular author and entrepreneur, February 2025 will mark a major stock market crash, potentially akin to the post-1929 era. However, Kiyosaki believes that Bitcoin and the crypto market will bloom and boom in the long haul.
Moreover, nation-states, led by the United States, are preparing to adopt a strategic Bitcoin and crypto reserve as a hedge against macroeconomic uncertainties.
Bigger Picture
The crypto market has been getting more complex with the introduction of new regulatory frameworks by different Jurisdictions led by the European countries, and the United States. The 2024/2025 crypto bull rally has gradually shifted from the previous bull runs due to the rising adoption of digital assets investment products by institutional investors.
Moreover, the huge cash inflow to the US spot Bitcoin ETFs does not have a seamless rail to flow to the altcoin industry. As a result, only altcoins with better prospects for real-world utility have been attracting new liquidity from institutional investors and retail traders in the recent past.
Under President Donald Trump’s administration, the crypto industry is expected to bloom, thus likely to prolong the ongoing bull rally to 2028.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Julia Sakovich
