The crypto market is back in the red as the fallout from Monday’s collapse continues to impact traditional and risk assets. Bitcoin (BTC) has struggled to build momentum, nearly slipping below $100,000 as it dropped to a low of $100,265 before recovering and moving to its current level of $101,600. The flagship cryptocurrency is down nearly 1% over the past 24 hours and almost 4% over the past week.
Other cryptocurrencies have not fared any better, falling back into the red after recovering on Tuesday. Ethereum (ETH) slipped below $3,200 and is currently trading around $3,110, down 2.50%. Solana (SOL) is down nearly 3% over the past 24 hours and almost 9% over the past week as it struggles to find a footing above $230. The Ethereum killer is trading at around $229. Ripple (XRP) has bucked the trend and is marginally up over the past 24 hours, even though overall sentiment is bearish. Cardano (ADA), Toncoin (TON), Hedera (HBAR), Stellar (XLM), Polkadot (DOT), Litecoin (LTC), and AI tokens also registered substantial drops.
French Investigators Open Probe Against Binance
French investigators announced they have opened a fraud probe into money laundering, tax fraud, and other related charges against Binance, the world’s largest crypto exchange. Binance has denied all allegations against it. The Paris Prosecutor’s Office’s economic and financial crime section said the probe involves money laundering in connection with drug trafficking.
According to the Prosecutor’s office, the investigation will examine the period from 2019 to 2024, involving offenses committed in France and the European Union. A Binance spokesperson stated the exchange denies all allegations against it and will fight any charges against it.
The new probe against Binance comes after former CEO Changpeng Zhao spent four months in prison after pleading guilty to violating US money laundering laws. Binance also agreed to pay a penalty of $4.3 billion. US authorities alleged Binance was using a “Wild West” model that welcomed criminals and other bad actors. They also alleged the platform did not report over 100,000 suspicious transactions.
Binance has said the platform has made considerable advances in anti-money laundering (AML) compliance and implemented the required KYC and employee training protocols.
Coinbase Launches In Argentina
Coinbase has secured approval to begin operations in Argentina, with the platform targeting 5 million users in the South American nation. The platform announced it has received Virtual Asset Service Provider (VASP) registration from the country’s National Securities Commission. The registration allows Coinbase to provide services in a country where cryptocurrencies are crucial in the financial system.
“Coinbase has received regulatory approval to launch in Argentina, where 5 million Argentinians use crypto daily.”
The platform’s operations in the country will be overseen by Matias Alberti, a fintech expert who has worked with Beunbit and Clara. Fabio Plein, Coinbase’s Director for the Americas, stated,
“Matías brings a wealth of experience and a deep understanding of the local market. We’re confident in his leadership as we work to bring crypto services to millions of Argentinians.”
A Coinbase survey highlighted the potential of cryptocurrencies in Argentina. 87% of respondents believed crypto can positively impact and enhance financial independence. Additionally, 79% of respondents were open to receiving their salary in crypto.
“This launch is more than just an expansion. Its a commitment to empowering Argentinians and providing them with the tools needed to regain control over their financial futures. Through education and a trusted platform, Coinbase is helping Argentinians harness the power of cryptocurrency to overcome financial challenges and build a more prosperous future.”
DeepSeek Leaves Markets Reeling
The tech industry was left reeling after DeepSeek, a Chinese company, launched its R1 model. The launch rattled investor confidence, wiping over $1 trillion from the US markets. The fallout from the launch impacted some of the biggest names in the tech industry, with NVIDIA registering the largest single-day market loss in US history, losing a staggering $600 billion in value. Google’s parent company, Alphabet, also posted a drop of $100 billion, while Microsoft lost $7 billion.
DeepSeek’s R1 model has sent shockwaves in global markets thanks to its performance, rivaling established players like OpenAi’s o1-mini while requiring significantly fewer resources and capital. According to DeepSeek, R1 was developed at a cost of $5.6 million, shattering the perception that similar models require between $100 million and $1 billion. OpenAI CEO Sam Altman called DeepSeek’s work invigorating and praised its ability to deliver results at a fraction of the price.
“DeepSeek’s r1 is an impressive model, particularly around what they’re able to deliver for the price. We will obviously deliver much better models, and also it’s legit invigorating to have a new competitor! We will pull up some releases.”
DeepSeek’s impact extended beyond major tech stocks, reverberating across the crypto market, primarily about GPU-reliant mining companies and AI-centric crypto tokens. DeepSeek’s capabilities raised questions about the sustainability of GPU-dependent industries, triggering marketwide uncertainty. As a result, crypto mining firms saw significant losses. Leading Bitcoin miner Riot Platforms (RIOT) saw its shares plummet over 15% on January 27. Another key player Cipher Mining (CIFR) registered an even more substantial decline, falling 25%.
The market turbulence impacted the crypto ecosystem as well, with AI tokens facing a significant selloff. Render (RENDER) saw a decline of over 11% over the past week. Similarly, The Graph (GRT), a blockchain indexing protocol, saw a drop of 15%, while Artificial Superintelligence Alliance (FET) saw a drop of 14%. However, the marketwide selloff appears to be a knee-jerk reaction rather than a fundamental shift in the market. However, markets remain bearish thanks to several macroeconomic factors at play.
Some analysts believe the disruption could be a boon for the crypto market, particularly for AI-crypto tokens. This is because of DeepSeek’s open-source nature and reduced costs. By lowering the cost of running AI-powered blockchain applications, DeepSeek can potentially make crypto projects more sustainable in the long run.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) is looking to reverse its recent decline, with the price up just over 1% over the past 24 hours. The bulls are struggling to build momentum and have been unable to push above $103,000 during the current t session. BTC’s labored price action comes as markets await the outcome of the first FOMC meeting of 2025. Analysts expect the Federal Reserve to keep its benchmark rate steady, given inflation remains above target.
“Bitcoin is consolidating between $100,000 and $102,000 as markets await today’s FOMC meeting, the first monetary policy decision of 2025. While inflation has eased, it remains above target, making it likely the Fed will keep its benchmark rate steady at 4.25%-4.50%. If the Fed chair adopts a hawkish stance, Bitcoin could experience some temporary volatility. Key levels to watch are resistance at $102,200 and support at $99,330.”
However, despite BTC’s ongoing recovery, markets remain on edge. The uncertainty will also lead to heightened volatility. A note by CoinSwitch Markets Desk stated,
“Markets remain on edge ahead of the FOMC decision, with the CME FedWatch tool pricing in a 99%+ probability of no rate cut. Given the heightened uncertainty, volatility is expected to remain elevated, and traders are advised to exercise caution.”
BTC is currently hovering around $102,000 and is up marginally during the ongoing session after declining for four consecutive days, spending most of the current week in the red. BTC began facing significant volatility towards the end of last week as it lost momentum after surging to a new all-time high. The price dropped over 2% on Wednesday before volatility set in on Thursday as buyers and sellers struggled to gain the upper hand. Buyers ultimately came out on top as the price registered a marginal increase and settled at $104,004. Buyers retained control on Friday and attempted a move past $107,000 as BTC rose to an intraday high of $107,038 before losing momentum. The price ultimately settled at $104,874 after registering an increase of 0.84%.
Source: TradingView
Sentiment changed over the weekend as BTC registered a marginal drop on Saturday before dropping over 2% on Sunday and settling at $102,655. The price plummeted to an intraday low of $97,766 on Monday as markets collapsed following the launch of DeepSeek. However, it recovered to reclaim $100,000 and settle at $102,064. Sellers retained control on Tuesday as the price dropped 0.69% to $ 101,362. Buyers are struggling to build momentum, and price action remains muted. If sellers regain control and push BTC below $100,000 and the 50-day SMA, the price could drop to $90,000. If this level is breached, BTC could witness a drop to $75,000-$80,000. The RSI is currently at 53, just above the neutral zone. However, the MACD has flipped to bearish, indicating bearish pressure and suggesting a downtrend.
Ethereum (ETH) Price Analysis
Ethereum (ETH) is also struggling to build momentum, with several key indicators pointing towards growing bearish sentiment. ETH has struggled since slipping below the 20-day SMA last weekend. The price recovered by Tuesday but could not move past the moving average and was back in the red on Wednesday, dropping 2.57% to $3,242. The price recovered on Thursday, rising 2,99% and moving to $3,339, but listing momentum at the 20-day SMA. Buyers attempted a move past the 20-day SMA on Friday as the price surged to an intraday high of $3,427. However, selling pressure forced ETH back below the 20-day SMA and settled at $3,309 after dropping nearly 1%.
Source: TradingView
ETH registered a marginal increase on Saturday before dropping 2.55% on Sunday to end the weekend in the red at $3,232. Bearish sentiment intensified on Monday as ETH plummeted to an intraday low of $3,020. Buyers prevented a further decline as ETH recovered to settle at $3,183 after a drop of 1.51%. Sellers retained control on Tuesday as ETH dropped over 3% and settled at $3,077. The current session sees ETH marginally up and trading just above the $3,100 level. If sellers regain control, ETH could slip below $3,000. Should this happen, the price could fall as low as $2,800 before recovering. Technical indicators highlight growing bearishness, with the RSI well below the neutral zone and the MACD flipped to bearish, indicating a downtrend.
Solana (SOL) Price Analysis
Solana (SOL) has declined rapidly during the week as sellers look to drive it below the 20-day SMA and $200. SOL has struggled to push above $260, losing momentum after surging to $295 last Sunday. SOL dropped to a low of $229 the following session before recovering and rising to $272 on Wednesday. However, sellers returned to the market on Thursday as SOL dropped nearly 2% to $253. SOL encountered significant volatility on Friday as buyers pushed the price to an intraday high of $270. However, SOL lost momentum after reaching this level and ultimately settled at $253, registering only a marginal increase.
Source: TradingView
Buyers retained control on Saturday as SOL rose 1.17% to $256. However, sentiment changed on Sunday as the price plummeted over 6%, slipping below $250 and settling at $240. Bearish sentiment intensified on Monday as markets collapsed. As a result, SOL dropped to an intraday low of $220 before recovering to settle at $235. Sellers retained control on Tuesday, with SOL dropping 3.45% to $226. However, the price has recovered during the current session and is up nearly 1% as buyers try to prevent SOL from dropping below the 20-day SMA and towards $200. While the RSI is just above the neutral zone, the MACD has flipped to bearish, indicating a possible downtrend.
Dogwifhat (WIF) Price Analysis
Dogwifhat (WIF) has steadily declined since the beginning of last week when it slipped below the 20-day SMA. The price had dropped to a low of $1.35 after registering a drop of over 9% on Monday. WIF recovered on Tuesday thanks to support at lower levels, rising 4.49% to $1.45. However, buyers lost momentum after reaching this level, and WIF was back in the red on Wednesday, falling to $1.41. Buyers struggled to build momentum on Thursday as WIF registered only a marginal increase. Selling pressure intensified on Friday as WIF slipped below a key support level, dropping nearly 10% to $128.
Source: TradingView
Sellers retained control over the weekend as WIF registered a marginal drop on Saturday and over 5% on Sunday to settle at $1.20. WIF fell to an intraday low of $1.07 before recovering to settle at $1.18. The price plummeted nearly 11% on Tuesday as sellers attempted to drive it below $1. As a result, WIF fell to an intraday low of $0.975 before recovering to reclaim $1 and settle at $1.05. The current session sees WIF up nearly 13% as buyers look to reclaim key levels and push above the 20-day SMA.
Internet Computer (ICP) Price Analysis
AI tokens have registered a significant decline this week following the emergence of DeepSeek. Internet Computer (ICP) is down nearly 6% over the past 24 hours as AI-focused tokens grapple with uncertainty. The token has declined almost 10% over the past week and looks set for further declines this week. ICP took a bearish turn since mid-January when it slipped below the 20-day SMA after reaching an intraday high of $11.46. Selling pressure intensified last Monday after buyers failed to move past the 20-day SMA after rallying to an intraday high of $10.81. By Wednesday, ICP had slipped below the 200-day SMA and dropped to $9.09. The price recovered on Thursday as buyers attempted to prevent a drop below $9. As a result, ICP rose nearly 2% and settled at $9.25 but could not move past the 200-day SMA.
Source: TradingView
Sellers returned to the market on Friday as the price dropped 2.38% to $9.03. ICP experienced a mixed weekend, registering an increase of nearly 2% on Saturday before dropping 4.13% to slip below $9 and settle at $8.82. Selling pressure intensified on Monday as markets collapsed. With AI tokens bearing the brunt of the collapse, ICP plummeted to an intraday low of $8.07. However, buyers propped up the price, and ICP ultimately registered a marginal increase and settled at $8.85. Selling pressure returned on Tuesday as the price dropped nearly 4% to $8.52. ICP remains in the red during the current session, with the price down almost 1% and trading at $8.45. The MACD indicates more pain ahead, indicating a further downtrend with sellers dominating the market.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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