Bitcoin (BTC) experienced a notable decline following a broader selloff in global markets, which was triggered by the unveiling of DeepSeek’s more efficient AI model, as well as a downturn in tech stocks. The leading cryptocurrency fell from a Sunday high of $105,000 to below $98,000 before recovering slightly to hover just under $100,000. This sharp move raised concerns among investors that further downside could be ahead, but some market analysts believe that this correction might already be nearing its end.
Geoff Kendrick, global head of digital asset research at Standard Chartered, is among those taking a more optimistic view. In a report published Monday, Kendrick reiterated his earlier warning of a potential 10%-20% market pullback, largely driven by inflated expectations surrounding President Donald Trump’s crypto-related executive orders and his proposed bitcoin reserve. However, Kendrick argues that much of this pullback may have already been priced in with the recent drop in Bitcoin’s value.
Despite the possibility of some short-term turbulence—with the Federal Reserve meeting on Wednesday and earnings reports from major U.S. tech companies—Kendrick pointed out that the rapid decline in U.S. Treasury yields suggests the worst of the downward move may be over. The 10-year Treasury yield is now approaching 4.5%, signaling a shift that could indicate stability for Bitcoin and the broader market.
While there hasn’t been an immediate price rally following Trump’s actions, Kendrick notes that over time, these policy changes should result in more institutional capital flowing into the crypto space, which would support Bitcoin’s long-term growth prospects.
LondonCryptoClub analysts also weighed in, calling the selloff a typical knee-jerk reaction to news events. They described the market’s reaction to DeepSeek’s developments as “FUD” (fear, uncertainty, and doubt), adding that such selloffs often mark local lows in a longer-term bullish trend.
“Stay cautious today, but this is still a ‘buy the dip’ market,” they suggested, indicating that the correction could present an opportunity for traders to enter the market at more favorable levels.
At the time of writing, Bitcoin was trading 4% lower at $99,800, while the tech-heavy Nasdaq 100 had dropped by 3%, with Nvidia (NVDA) seeing a significant 15% decline.
