Crypto assets experienced a tumultuous overnight decline, closely mirroring a sharp pullback in tech stocks, notably driven by a Nvidia-led drop. This market turbulence followed the announcement of DeepSeek’s more efficient artificial intelligence model, which prompted widespread volatility across asset classes.
Bitcoin (BTC), at one point, faced a dramatic fall from a Sunday high of $105,000 to below $98,000 before showing signs of recovery, presently hovering just beneath the $100,000 threshold. The swift decline raised alarms among analysts, many of whom warned that this could signify the onset of a more substantial pullback.
Contrasting this cautious outlook, Geoffrey Kendrick, global head of digital asset research at Standard Chartered Bank, recommended a more optimistic approach. In his Monday morning report, Kendrick advised investors to “buy the dip,” aligning with a strategy to capitalize on temporary price reductions.
Kendrick’s previous forecast indicated a potential 10%-20% correction in the market, stemming from overly ambitious expectations surrounding a prospective cryptocurrency executive order from the Trump administration and a strategic reserve proposal. However, he noted that the recent selloff has likely addressed much of this concern.
Looking ahead, there may be further challenges this week as the U.S. tech sector prepares to report earnings and the Federal Reserve’s results from its January meeting are anticipated. Nonetheless, Kendrick highlighted a notable decline in U.S. Treasury yields, particularly the 10-year note yield nearing 4.5%, suggesting that the bulk of the downward pressure may have already been absorbed.
While immediate benefits from the Trump administration’s digital asset initiatives may not be readily apparent, Kendrick believes that positive effects are likely to materialize over the coming weeks and months through increased institutional asset inflows.
Analysts at LondonCryptoClub echoed this perspective, suggesting that the recent crypto selloff is largely a reactionary event tied to headline news. They commented, “The Deepseek FUD [fear, uncertainty, doubt] is a classic shoot first, ask questions later,” emphasizing that such rapid flushes typically signify local lows within an ongoing bull trend.
They cautioned investors to exercise prudence, noting that the broad derisking observed can often be mechanical and indiscriminate in nature. Nonetheless, the underlying analysis favors a BTFD (buy the f*** dip) mentality, maintaining that strategic buying during dips remains a viable market approach.
As of the latest update, Bitcoin was trading down over 4% in the last 24 hours, currently priced at approximately $99,800, while the tech-heavy Nasdaq 100 index fell by 3%, with Nvidia (NVDA) leading the decline at 15%.
