Bitcoin (BTC) experienced a sharp drop overnight, mirroring a broader tech stock decline, as concerns grew over DeepSeek’s AI model, which outperformed expectations. The cryptocurrency fell from a Sunday high of $105,000 to below $98,000 before recovering slightly to hover just under $100,000. While some analysts raised alarms about a potential deeper pullback, Geoff Kendrick, global head of digital asset research at Standard Chartered, disagreed, advising a “buy the dip” approach.
Kendrick had previously cautioned about a possible 10%-20% correction due to inflated expectations surrounding U.S. President Donald Trump’s crypto executive orders and his proposed strategic bitcoin reserve. However, Kendrick argued that the recent selloff likely addressed much of this overzealous optimism.
Although there may be some continued volatility, especially with U.S. tech earnings and the Federal Reserve’s policy meeting coming up, Kendrick pointed to the rapid decline in U.S. Treasury yields—now near 4.5%—as a signal that much of the downward move for crypto assets may already be over. The long-term outlook remains positive, with institutional asset flows expected to rise as the effects of the Trump administration’s digital asset policies gradually unfold.
Echoing Kendrick’s sentiment, analysts at LondonCryptoClub called the recent selloff a knee-jerk reaction to headline events, particularly related to DeepSeek’s impact. They viewed this dip as a potential buying opportunity, noting that such “flushes” often mark local lows in an ongoing bull trend.
“Be cautious today, as broad market derisking can be indiscriminate,” the analysts added. “However, this is still very much a ‘buy the dip’ market.”
At the time of writing, bitcoin was trading down over 4% at $99,800, while the tech-heavy Nasdaq 100 index fell by 3%, led by a 15% drop in Nvidia (NVDA).
