Bitcoin Rises 4% to $103,000, Easing Monday’s Losses; XRP Leads Crypto Rebound
Bitcoin (BTC) saw a 4% increase in the past 24 hours, trading at around $103,000 during European morning hours, partially recovering from Monday’s losses. The rally came after breakthroughs from China’s DeepSeek triggered a significant drop in U.S. stock indexes, as concerns over AI investment overvaluation took hold.
XRP led the gains among major cryptocurrencies, surging 12%, while other tokens like Cardano (ADA), Binance Coin (BNB), Solana (SOL), and Dogecoin (DOGE) also posted gains of up to 9%. Ethereum (ETH) rose by 4.5%, contributing to an overall 3% increase in market capitalization.
Bitcoin’s 4% rise in the last 24 hours helped ease the losses from Monday, which saw over $1 billion in futures liquidations and an 8.5% drop in the CoinDesk 20 (CD20) index at its lowest point. Historically, large liquidation events can signal market corrections, offering potential buying opportunities, as CoinDesk noted.
TRUMP tokens also saw a 12% increase, leading gains among midcap tokens with market caps below $5 billion. This boost in the broader market came after Tuttle Capital filed for the first-ever 2x leveraged ETFs in the U.S., proposing products designed to deliver 200% of the daily price performance of several major cryptocurrencies, including BONK, TRUMP, and MELANIA.
Monday’s market dip was largely attributed to breakthroughs from China’s DeepSeek, whose AI model was shown to outperform OpenAI’s, despite a significantly lower budget and fewer resources. DeepSeek’s model was developed on just $6 million and a fraction of the GPU capacity that OpenAI uses, which recently raised $6.6 billion and is valued at over $157 billion.
However, some traders suggest that DeepSeek’s success is just one factor influencing the markets. Nick Ruck, director at LVRG Research, told CoinDesk that the initial fears around DeepSeek actually presented a buying opportunity for crypto markets. “The crypto industry isn’t in direct competition with DeepSeek,” Ruck explained. “Crypto projects using AI can integrate DeepSeek’s open-source model to improve efficiency and drive innovation.”
Looking ahead, traders are focused on macroeconomic data, including the Federal Open Market Committee (FOMC) meeting, scheduled for January 28–29, and earnings reports from major companies like Apple, Meta, and ASML. Ruck remains optimistic about Bitcoin’s long-term prospects, citing favorable policies for the crypto sector in both the U.S. and abroad.
Expectations for the FOMC meeting are that no rate cuts will be signaled, which historically impacts Bitcoin prices as investors adjust their positions between riskier assets and more traditional investments.
In a lighter note, Singapore-based QCP Capital shared astrological insights in its Tuesday market update, drawing attention to the upcoming Year of the Snake. “The market’s twists and turns remind us of the resilience and adaptability of this zodiac, qualities that will be crucial as we navigate the challenges and opportunities of 2025,” the firm stated.
Bitcoin saw strong performance in 2024, the Chinese Year of the Dragon, and market analysts suggest that unpredictable movements could eventually lead to new highs in the coming year, based on lunar chart predictions involving the “Rough Green” and “Brown Tree” snakes.
