$BTC Crypto Markets Tumble on AI Advancements, but Analysts Urge "Buy the Dip"

Cryptocurrencies experienced a sharp decline overnight, mirroring a plunge in tech stocks led by Nvidia, following the unveiling of a more efficient artificial intelligence model by DeepSeek. Bitcoin, after reaching a high of $105,000 on Sunday, plummeted below $98,000 before recovering slightly to hover around $100,000.

While some analysts warned of a deeper market correction, others, like Geoffrey Kendrick, Global Head of Digital Asset Research at Standard Chartered Bank, advocated a "buy the dip" strategy. Kendrick had previously cautioned about a potential 10-20% correction due to overoptimism regarding the administration's crypto initiatives. He believes the recent selloff has largely addressed these overvalued expectations.

Although near-term price surges from the administration's policies might be limited, Kendrick anticipates significant long-term benefits for the sector through increased institutional investment.

LondonCryptoClub analysts echoed this sentiment, describing the crypto selloff as a knee-jerk reaction to the DeepSeek announcement. They characterized the decline as a classic case of "fear, uncertainty, and doubt," typical of market lows within an upward trend. They advised caution due to potential broad market derisking but emphasized the continued attractiveness of "buying the dip" in the current market.

At press time, Bitcoin was trading down over 4% at $99,800, while the Nasdaq 100 was down 3%, with Nvidia experiencing a 15% decline.