Bitcoin Jumps 4% to $103,000, Easing Monday’s Losses; XRP Leads Market Recovery with 12% Surge
Bitcoin (BTC) gained 4% in the past 24 hours, reaching approximately $103,000 by Tuesday morning, providing relief after Monday’s sharp downturn. This rise comes following a volatile day for U.S. equities, spurred by concerns over China’s DeepSeek AI breakthrough, which led to a significant sell-off across the stock market.
XRP was the top performer among major cryptocurrencies, surging 12%, while other prominent tokens like Cardano (ADA), Binance Coin (BNB), Solana (SOL), and Dogecoin (DOGE) also saw impressive gains of up to 9%. Ethereum (ETH) rose 4.5%, contributing to a 3% increase in overall market capitalization.
Bitcoin’s 4% rally helped offset some of the losses from Monday, which saw more than $1 billion in futures liquidations and an 8.5% drop in the CoinDesk 20 (CD20) index. Large liquidation events are often viewed as market corrections, signaling potential buying opportunities, as noted by CoinDesk.
Among midcap cryptocurrencies, TRUMP tokens stood out, jumping 12%, reflecting a broader recovery in tokens with market caps under $5 billion. The market sentiment was boosted by Tuttle Capital’s filing for the first-ever 2x leveraged ETFs in the U.S., which would offer 200% returns based on the daily performance of major cryptocurrencies, including TRUMP, MELANIA, and BONK.
Monday’s sell-off was primarily attributed to DeepSeek’s advancements, with the Chinese AI firm’s model reportedly outperforming OpenAI’s, despite operating on a fraction of the resources. DeepSeek, with a $6 million budget, made significant strides, challenging the dominance of OpenAI, which recently raised $6.6 billion and has a $157 billion valuation.
Despite the initial market panic, some traders see DeepSeek’s breakthrough as just one factor affecting the market. Nick Ruck, director at LVRG Research, emphasized that the cryptocurrency industry is not in direct competition with DeepSeek and that its open-source model could actually benefit crypto projects by enhancing efficiency and driving innovation. “This could be a long-term positive for the industry,” Ruck noted.
Traders are now focused on macroeconomic events later in the week, including the Federal Open Market Committee (FOMC) meeting from January 28–29, along with earnings reports from major companies such as Apple, Meta, and ASML. Ruck remains optimistic about Bitcoin’s prospects, noting that favorable U.S. and global policies will continue to support the growth of the crypto industry.
The FOMC meeting is not expected to signal any rate cuts, which could influence Bitcoin’s price as investors adjust their positions depending on the Federal Reserve’s decisions.
In a more lighthearted note, Singapore-based QCP Capital included astrological insights in their Tuesday market update, drawing parallels between the market’s twists and turns and the traits of the Snake in Chinese astrology. The firm suggested that the adaptability and resilience symbolized by the Snake will be key as the market navigates the challenges and opportunities of 2025.
Bitcoin performed strongly in 2024, the Year of the Dragon, and analysts are hopeful that the unpredictable market developments in the Year of the Snake will lead to new highs, based on the movements of the “Rough Green” and “Brown Tree” snakes in the lunar charts.
