Bitcoin returns to the $102,000 level after volatility

The crypto market witnessed an impressive recovery on Monday evening, as Bitcoin rose above $102,000 after a turbulent week due to information from the Chinese AI company #DeepSeek .

Data from CoinGecko shows that Bitcoin is currently fluctuating around this level, although it is still down 6.5% compared to the all-time high of $109,000 on January 20.

Confidence returns to the market

According to Dominick John, an expert at #KronosResearch , investors are reallocating into their favorite crypto assets with confidence in the long-term impact of AI development.

Dogecoin, after the worst price drop of the year, has increased by 2.6% to $0.33. Other coins such as BNB and XRP also grew by 3.6% and 3.2%, respectively.

DeepSeek and market changes

DeepSeek – a prominent Chinese AI company with the Janus-Pro-7B model – initially caused panic when announcing its new open-source AI model. However, Wall Street experts assess that the impact of DeepSeek is not as severe as predicted.

  • Stacy Rasgon, an analyst from Bernstein, confirmed that the initial reaction was 'overblown' and that DeepSeek cannot build OpenAI with just $5 million.

  • Experts from Morgan Stanley believe that DeepSeek represents 'an alternative path in effectively training AI,' rather than a threat to the current giants.

The US tech sector is heavily impacted

DeepSeek caused NVIDIA's stocks to lose $600 billion in market capitalization in one day, also dragging down $1 trillion in losses across the US tech sector.

However, NVIDIA's spokesperson expressed optimism that DeepSeek's model does not violate export control regulations and could help open up new avenues.

President Trump and the perspective on DeepSeek

President Donald Trump, who often takes a hard stance against China, surprisingly changed his perspective with a new import tax rate of only 10%, much lower than the 60% he previously proposed.

In a meeting in Miami, Mr. $TRUMP emphasized:

'DeepSeek is a reminder that our industries need to focus on competition and innovation to succeed.'

Conclusion

The recovery of Bitcoin after the turmoil from DeepSeek shows that confidence in the crypto market remains strong, despite facing many unexpected factors. However, investors need to continue to be cautious in light of potential impacts from major global events.

Note: Crypto investment always carries high risk. Please do thorough research before making decisions. #anhbacong