Deepseek Ai hit the coded currency markets strongly, which led to a decrease in the distinctive symbols in all fields. Is this a temporary decline or the beginning of a significant resetness of the market?
The cryptocurrency is deeper with Deepseek ai
As of January 27, the total encrypted currencies Market value The currency has decreased by more than 5% over the past 24 hours, to decrease to $ 3.59 trillion, according to Coingecko. This represents one of the most severe sales since the Trump campaign opening It is January. 20.
Bitcoin (BitcoinThe leading cryptocurrency, not also rescued, has decreased by about 5 % over the past 24 hours to be traded at 99,800 dollars until this writing.
Meanwhile, Ethereum (EthereumHe decreased more than that, losing 7.5 % of its value to hoard around $ 3100. The performance of alternative currencies was worse, as the losses ranged from 10% to 20%.
Timing cannot be more curious. On January 23, Trump signed several agreements Executive orders Which many praised as a historical step to adopt cryptocurrencies in the United States
These orders came just two days after the Acting Chief of the Securities Authority and Stock Exchange Marc Oida Firing A team specialized in the field of encrypted currencies to address organizational mystery. However, instead of high due to this optimism, it appears that the cryptocurrency market has collapsed under the weight of an invisible weight.
What is the reason for this dissonance? Can sales be linked to deeper fears of investors, or is it just a case such as "buying rumors and selling news"?
Let's go deep into the potential stimuli behind this stagnation at the market level, reveal the details of Trump's orders, and think about what the future may carry for digital assets in this new political age.
Decode the last decline
While executive orders seemed to serve as an upper stimulus, other factors appeared to overwhelm optimism, which led to large -scale sale throughout the market.
The direct motivation for this decline appears to be the launch of Deepseek R1, an innovative model of artificial intelligence revealed by the Chinese Deepseek laboratory.
This open -language model was described as a major teacher of artificial intelligence, as Mark Anderson called it "The moment of Sputnik for artificial intelligence."
What makes Deepsek R1 distinct is its efficiency, it matches or outperforms the performance of leading models such as those in Openai, but it is designed with a modest budget of $ 6 million and uses a much lower number of graphics processing units.
While this penetration represents a tremendous leap for artificial intelligence, it shook the cryptocurrency market associated with artificial intelligence as investors reassess the value of the distinctive symbols associated with intense GPU operations.
Makes (Rander), Near the protocol (close), The graph (Total total revenue) And the superficial intelligence alliance (footIt is among the most affected, with losses ranging from 7 % to 9 %.
Node.ai (GPU), which relies heavily on the processes based on the graphics processing unit, has witnessed an amazing decrease by 20 %. In all, the total market value of encrypted currencies that focus on artificial intelligence has decreased by 8 %, now to reach 38 billion dollars.
These sales created a double effect, extending to the broader cryptocurrency market and led to a decrease to the prevailing assets such as Bitcoin and Ethereum.
The successive losses can be partially explained by liquidation, a phenomenon that often leads to an enlarged price movements. Over the past 24 hours, approximately $ 942 million has been filtered from future centers, of which 830 million US dollars from long -term positions.
This screaming imbalance between long and short liquidations clearly shows the extent to which traders are not ready for rapid sales caused by the repercussions of Deepseek.
The liquidation of this size often creates a vicious circle - where the low prices lead to more liquidation, which in turn leads to the acceleration of the vortex of landing. As a result, the market is entered into a state of free fall.
Meanwhile, the macroeconomic environment adds more pressure. The US dollar index, which measures the power of the dollar, rose to 107.74. Historically, the strong dollar tends to influence bitcoin and risk assets, as it makes it less attractive.
Amid this, investors are now looking at the Federal Reserve meeting on January 29, with the interest rate of 99.5%. probability From interest rates remain fixed at 4.25% - 4.50%, according to the CME Fedwatch tool.
While the Federal Reserve is unlikely to raise interest rates, the market is still on the edge of the abyss, as even the accurate hints of President Jerome Powell about future emphasis can increase the uncertainty and increase the pressure on the already in the market.
Decode executive orders
President Trump Executive On January 23, it may represent a turning point in the cryptocurrency industry. The title "Ensuring the US Drink in Digital Financial Technology" is a comprehensive attempt to clarify encrypted currency regulations, encourage innovation, and establish the United States as a world leader in digital assets.
One of the central features of this matter is to create the presidential work group concerned with the digital asset markets.
For many years, companies and investors have suffered from unwanted regulations across the states and federal agencies, making it difficult to innovate or plan for the future.
This new group led David SachsCaesar, artificial intelligence and the newly appointed cryptocurrencies by Trump, which includes major figures such as the Treasury Secretary, Chairman of the Securities and Stock Exchange Committee, and other relevant heads of agencies, will focus on developing one group of federal rules for how coded currencies in the United States work. we
The working group was also assigned to evaluate the creation of a "strategic stock of national digital assets". While the details are still mysterious, this initiative may mean that the United States will start a contract Digital asset reserves, which are likely to include cryptocurrencies legally seized by enforcement procedures.
Historically, the American Marshall service sold Bitcoin and other cryptocurrencies that were seized by auction, but Trump's order may indicate a shift in politics.
While the document itself does not explicitly mention Bitcoin, Trump previously stated during his campaign that he will work to ensure the federal government retains 100 % of the Bitcoin currently owned or obtained in the future.
Another main step in the matter is the position of management on the central bank's digital currencies. These are the government -controlled currencies, such as the digital yuan in China, which focuses on the financial authority under the control of the government. Trump's order is frankly prohibited from federal agencies "take any action to create, issue or promote Digital currencies for central banks".
This item cancels the executive order of the digital assets issued by the previous administration and the framework of the Ministry of Treasury for international participation on digital assets, both, as the Trump administration says, suppressing innovation and underlying American economic freedom.
The administration believes that economic freedom and innovation better prejudice in an environment where private companies - not governments - are responsible.
Moreover, many cryptocurrencies and investors have long complained about unclear or excessive enforcement procedures for the aggression that suffocates growth.
Hence, agencies were also directed to review the current regulations, submit recommendations to the working group, and suggest changes to remove unnecessary burdens on the industry. This stops the organizational transgression, which previously hindered the encrypted currency sector.
What is the next for encrypted currency markets?
While the sales caused by the Deepseek R1 advertisement and the pressures of the broader macroeconomic economy have left investors feel uncomfortable, some prominent cryptocurrencies still maintain the long -term up expectations.
According to Michael Van DiBob, an encrypted currency analyst who has a wide -ranging follow -up, it may be the worst decline that has already been behind us. He pointed out in a recent tweet that "the markets are rapidly recovering," noting the signs of recovery with the return of capital flows to certain projects.
He added: "The price of the ETH/BTC is likely to increase, indicating that the performance of the ETHEREUM compared to bitcoin can improve in the near future.
However, expectations are not without challenges. Aaron Createo, another prominent analyst in encrypted currencies, highlighted the fact that the macroeconomic factors remain a major source of pressure on the encrypted currency market.
He pointed out that "Altcoin Mcap re -tested its penetration in the fourth quarter", in reference to the sharp decrease in the total market value of alternative currencies, as investors have liquidated their positions during the broader sales operations.
He partially attributed this to the continuous "American stock market collapse", but provided assurances that this turmoil is likely to be temporary. He added: "The upper trend has not ended yet, and we will deliberate with a significant rise in the coming months."
While both analysts speak an optimistic tone about market prospects in the medium and long -term market, it is important that we remain careful. The broader macroeconomic environment is far from stability.
It is possible for the next meeting of the Federal Reserve Bank to play a major role in shaping morale. Historically, cryptocurrency markets have suffered during periods of the dollar's strength, and any hard -line comment from the President of the Federal Reserve, Jerome Powell, could renew the pressure of the sale.
In addition, while Trump's executive matter has given more hope for more friendly policies cryptocurrencies in the United States, there is still a lack of certainty about how to implement this framework and whether it will sufficiently address the challenges facing companies today.
In general, while the market showed stability signs after recent sales, it has not yet exited the crisis yet. It is necessary for traders and investors to deal with caution in the short term. Patience and vigilance are likely to be essential as the cryptocurrency market passes through this turbulent period.
Disclosure: This article does not represent an investment advice. The content and materials contained on this page are for educational purposes only.
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