Crypto assets saw a panic overnight drop alongside an Nvidia-led tech stock drop on DeepSeek’s more efficient artificial intelligence model.
With bitcoin (BTC) at one point sliding from a Sunday high of $105,000 to below $98,000 before bouncing back to its current level just below $100,000, some analysts warned that this could be the start of an even deeper pullback.
Among those taking the other side of that trade is Geoffrey Kendrick, global head of digital asset analytics at Standard Chartered Bank.
“Buy the dip,” he said in a report Monday morning.
Kendrick warned a week ago of a potential 10%-20% correction thanks to markets pricing in overzealous expectations for Trump’s crypto order and strategic reserve. The overnight selloff, he argued, likely took care of much of this.
While there may be some more pain ahead this week with major U.S. tech companies reporting earnings this week and the Federal Reserve’s January meeting results on Wednesday, Kendrick noted the rapid decline in U.S. Treasuries — the 10-year yield is now approaching 4 .5% — which signals that much of the downward movement is done.
While there isn’t much near-term price upside from the Trump administration’s digital asset actions, benefits should ripple through the sector over the next weeks and months through increased institutional asset flows.
LondonCryptoClub analysts struck a similar note, seeing the crypto sale as a knee-jerk reaction to a headline event.
“Deepseek FUD [fear, uncertainty, doubt] is a classic shoot first, ask questions later,” LondonCryptoClub analysts said. “Flushes like these amid a still constructive fundamental macro story typically mark local lows in a bull trend.”
“Be cautious today as broad derisking can be very mechanical and arbitrary,” they added. “But this is very much a BTFD [buy the **** dip] market still.”
At press time, Bitcoin was trading up more than 4% over the past 24 hours at $99,800. The tech-heavy Nasdaq 100 was lower by 3%, led by a 15% drop for Nvidia (NVDA).
