The week was full of activity in the cryptocurrency world, starting on Monday with significant news from a Chinese AI company, DeepSeek. It claimed to offer the capabilities of ChatGPT but at a faster and cheaper rate, sparking discussions on the need for advanced chips from companies like Nvidia. This announcement coincided with a widespread stock market crash, including a notable drop in NVDA shares, and impacted the crypto market as well. Bitcoin was trading around $105,000 early Monday but dropped several thousand dollars to a multi-week low under $98,000 within hours. Altcoins mirrored this decline, but the downturn was short-lived. By Tuesday morning, Bitcoin had recovered to $100,000, despite briefly falling below it again. The markets stabilized over the following days, awaiting the first FOMC meeting of the year under Trump’s leadership. After it was announced that the US central bank would keep interest rates unchanged, Bitcoin fell again by $1,500. However, it rebounded on Thursday, rising to $106,500 before correcting to $104,000 earlier today. Bitcoin’s price is currently around $105,000.
The weekly charts indicate a predominantly red market, with SOL being the worst performer, dropping 11% after hitting an all-time high last week due to TRUMP token excitement. DOGE, HBAR, SHIB, and XLM also experienced significant declines, while OM saw a nearly 50% increase since last Friday.
On social media, Twitter buzzed with discussions about these market dynamics and their implications for the future of cryptocurrencies.
