Crypto Inflows Plummet Amid DeepSeek Frenzy

Crypto Inflows Retract to $527 Million Amid DeepSeek Frenzy

Crypto inflows have retracted to $527 million amid the DeepSeek frenzy, according to data from Coinglass. This significant decrease in inflows comes as a surprise, given the recent surge in interest in the crypto market. However, the DeepSeek protocol, a Chinese AI project, has damaged the US tech sector stocks, leading to a decline in crypto inflows.

Bitcoin's price has dropped below $95,000 in Monday's rout, but the entire market took hits. BTC sell-offs inspired a similar dumping action in Solana, and Ethereum also hit a YTD low. If Zhou is correct and the tariffs liquidated up to 5x the reported amounts, this could become a very painful moment for the market.

Earlier in January, Arthur Hayes, former BitMEX CEO, predicted that BTC could drop to $70,000 in the current political climate, triggering a mini-financial crisis. Ultimately, the crypto industry has experienced many serious bear markets. Nonetheless, it has always managed to bounce back. Bitcoin is still worth nearly double what it was 6 months ago, and these downswings exist in the context of monumental growth. This price cycle may present a buying opportunity for long-term holders as crypto will eventually recover.