"Bitcoin's $10K Exodus: AI Fears Spark Crypto Panic"

Bitcoin Records Net Outflow of 10,318.36 BTC Over Seven Days

In the past seven days, CEX has recorded a net outflow of 10,318.36 Bitcoins, highlighting a significant shift in market dynamics. This development comes amidst a backdrop of increased volatility and uncertainty in the cryptocurrency sector, driven by various factors including the emergence of new AI models and macroeconomic influences.

The rise of China's AI model DeepSeek has sent shockwaves through global financial markets, coinciding with significant liquidations in the crypto space. The crypto market experienced a staggering $864 million in liquidations over a 24-hour period, driven largely by investor reactions to the emerging AI competition. Alvin Kan, COO at Bitget Wallet, stated that the hype around DeepSeek and broader volatility in the US AI market has spooked investors, leading to a flight to safety.

Recent data reveals approximately $864 million in liquidated positions within the crypto market, primarily affecting Bitcoin (BTC) traders. According to CoinGlass, this included around $250 million in long positions. The selling pressure was exacerbated by traders attempting to mitigate risk amid fears of further market declines. Justin d’Anethan, head of sales at token launch advisory firm Liquifi, noted that traders are not just reacting to immediate selling pressure but are also preparing for continued instability in the near term.

As fluctuations in the crypto market coincide with economic shifts, analysts note that monetary policy decisions are heavily influencing investor behavior. Upcoming meetings of the US Federal Reserve are crucial as the market expects the interest rates to remain between 4.25% and 4.5% without significant alterations. The current atmosphere of uncertainty has created a defensive posture among traders, impacting crypto valuations.

The influence of AI advancements extends beyond cryptocurrency into broader tech stocks, with companies like Nvidia leading the AI charge experiencing noticeable declines. As per recent reports, Nvidia’s market valuation decreased by 3.12% by the end of January 24, reaffirming how intertwined technology stocks and the crypto market have become in this climate of heightened competition.

Despite the prevailing negative sentiment, some analysts, such as those from Matrixport, highlight potential bullish trends in the context of seasonal celebrations. The convergence of the