The prices of Bitcoin and many cryptos are down today. BTC price is already dipping by around 5% today. ETH, BNB, SOL, XRP, and PEPE have also seen dips of 5% to 15%. All these come amid some events within the crypto market. Some analysts have weighed in on these issues to reveal why the market is down.
What you'll learn 👉
Negative Sentiment from the US Stock Market
Ash Crypto emphasizes that the current crypto market decline isn’t isolated but directly tied to U.S. stock market performance. The analyst points to DeepSeek, a Chinese AI startup, as the primary catalyst for the market turbulence.
DeepSeek employed a cost-effective model—reportedly spending less than $10 million—combined with its rapid rise to become the top free app on Apple’s App Store, surpassing ChatGPT.
In Ash’s analysis, the stark contrast between DeepSeek’s development costs and ChatGPT’s $157 billion valuation has triggered serious concerns among major U.S. investors. These investors are now questioning whether U.S. stocks, particularly in the tech sector, are significantly overvalued.
Despite the market reaction, Ash advises against panic selling, characterizing the situation as another instance of FUD (Fear, Uncertainty, and Doubt) in the crypto market.
Mystery of Crypto also supported this view. Their analysis focuses on the comparative metrics between DeepSeek and ChatGPT. They also noted that ChatGPT has raised nearly $17 billion in funding, DeepSeek achieved similar functionality with just $10 million in development costs. The analyst draws a direct line between this valuation disparity and the broader market implications.
According to Mystery of Crypto, the success of DeepSeek is forcing a fundamental reassessment of the AI hype that has driven U.S. stock market gains over the past two years. This reevaluation has triggered a sell-off in U.S. stocks, which has subsequently spilled over into the crypto markets, creating a domino effect of declining prices.
Read Also: Avalanche (AVAX) Price Nears Major Resistance: Is a Bullish Rally Imminent?
Quinten Francois’s Institutional Perspective
Quinten Francois offers perhaps the most bullish interpretation of current events. While acknowledging Bitcoin’s retreat to $100,000, Francois focuses on institutional behavior rather than retail market reactions. The analyst points to two significant trends: record-level Bitcoin accumulation by institutions and increasing interest from global governments in establishing strategic Bitcoin reserves.
Francois characterizes the current market situation as a divergence between short-term retail panic and long-term institutional strategy. Using a chess analogy, he suggests that selling during this period of market uncertainty means “playing checkers while the big players are playing chess.” His analysis implies that the current market downturn may present a strategic buying opportunity rather than a reason for concern.
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