"Crypto Inflows Plummet Amid DeepSeek AI's Market Shakeup"

Crypto Inflows Drop as DeepSeek AI Shakes Markets

Crypto inflows have dropped significantly as DeepSeek AI's recent announcement has shaken the market. The AI startup revealed plans to create an open-source, decentralized AI platform, which has sparked concerns about potential regulatory issues and competition with established AI companies. As a result, investors are pulling back on their crypto investments, leading to a decrease in inflows.

Bitcoin's Coinbase Premium Index has also been affected, with the recent policy shift by US President Trump delaying tariffs on Canada and Mexico. This move has triggered a surge in buying activity among American investors, pushing the Coinbase Premium Index to its highest level of the year. However, readings from the coin's Moving Average Convergence Divergence (MACD) suggest that bearish pressure remains strong, indicating that selling activity outweighs buying efforts.

In the short term, Bitcoin's price could extend its decline to $95,513. Conversely, if the bulls regain market dominance, the coin's price could break above the $102,538 resistance level and attempt to revisit its all-time high of $108,388.

Institutional investors seem to be capitalizing on the lower prices, with Bitcoin spot exchange-traded funds (ETFs) seeing a net inflow of $560 million between January 27 and January 31, 2023. BlackRock's Bitcoin ETF (IBIT), alone, pulled in $751 million during that time. These strong trends suggest that large institutional players are well-positioned in and bullish on Bitcoin despite its volatility.

Ethereum's next move is uncertain, with a bullish signal coming from the 1inch Investment Fund, which is making strategic purchases while the market is down. However, another big event on the blockchain has some worried that it might lead to lower prices. Two whale wallets that had been inactive for six years suddenly moved a massive 135,548 ETH to Bitfinex just eight hours before the recent price crash. If these holders choose to sell their tokens, it could lead to a market downturn.

Ethereum spot ETFs experienced a net outflow of $45.51 million last week, contributing to the negative sentiment. Overall, this situation is starting