Overview

Crypto Daybook Americas presents the latest insights on the shifts in cryptocurrency markets driven by external factors such as the advances from China’s DeepSeek.

Market Impact

Bitcoin’s price dropped to $97,800, largely influenced by significant sell-offs in AI tokens and rising anxieties regarding the effects of DeepSeek on American tech valuations. Nasdaq futures fell dramatically by 700 points.

Traders have observed that low liquidity conditions are precipitating sharp market movements, leading to fewer buyers supporting prices under current bearish sentiment.

Thoughts from Analysts

Trader Alex Kruger stated,

“The problem is, few understand how DeepSeek changes things. It’s hard to quantify the issue—and when faced with uncertainty, people de-risk.” Translation: The understanding of DeepSeek’s implications remains limited, leading to hesitance in market trading.

Institutional Insight

Paul Howard from Wincent believes that institutional interest may rebound within the next few months, anticipating participation amid the evolving market dynamics.

Key Upcoming Events

• Crypto Events:

  • Jan 27: Launch of Abstract, an Ethereum L2.
  • Jan 28: Hedera network upgrade.

• Market Announcements:

  • Jan 29: Federal Reserve’s interest rate decision.

Conclusion

Despite current market stress, there remains optimism about institutional participation possibly lifting market conditions in the near future.