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After a relatively quiet weekend for the crypto markets, Monday morning opened with a sharp retracement as traditional markets reacted to the unveiling of DeepSeek AI.
The US markets saw significant turbulence, with NASDAQ futures (NQ!) plunging over 250 points (a 1.2% drop) at the open. Approximately one-third of the NASDAQ is composed of AI-related stocks, which have been a key driver of this year’s bullish momentum. Unsurprisingly, the emergence of DeepSeek AI—an open-source competitor—has triggered concerns, leading to a notable sell-off in tech-heavy indices.
This volatility has rippled into the crypto markets, pulling Bitcoin and altcoins lower. Bitcoin remains within its established range, with the lower boundary around $100k and the upper boundary at its all-time high near $109k. Current price action suggests that Bitcoin may test the lower end of this range ahead of the Federal Open Market Committee (FOMC) interest rate decision scheduled for Thursday.
Stormrake Spotlight: Ethereum (ETH) ($3,203)
Stormrake Spotlight: Ethereum (ETH) ($3,203)
Our new Stormrake Spotlight focuses and provides a more in depth analysis on undervalued cryptocurrencies, with Ethereum (ETH) offering a compelling risk-reward profile at current levels. ETH is currently trading within a key accumulation zone between $3,000 and $3,200, presenting a potential opportunity for strategic accumulation.
As the second-largest cryptocurrency by market cap, Ethereum has yet to experience a significant rally comparable to those seen in other digital assets. Notably, Donald Trump's World Liberty Financials lists Ethereum among its largest holdings, further highlighting its appeal in high-stakes portfolios.
BTC/USD Key Levels and Price Action:
BTC/USD Key Levels and Price Action:
After an extended period of consolidation, Bitcoin has dropped over 3% in the wake of the DeepSeek AI correction. This correction has broken Bitcoin's neutral structure, flipping market momentum in favour of the bears.
The $100k level is now a critical area to watch and could act as a support zone. A sustained hold at this level might provide a foundation for a rebound, depending on upcoming macroeconomic developments.
BTC Total ETF Flows for 26 Jan: (data not available)
(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)
ETH/USD Key Levels and Price Action:
ETH/USD Key Levels and Price Action:
Ethereum has mirrored Bitcoin's trajectory, dropping nearly 4% in recent hours. The bearish momentum has firmly taken hold, bringing ETH to the critical level of $3,207. As noted earlier, ETH is now trading within the accumulation zone between $3,000 and $3,200, where buyers may step in to provide support.
ETH Total ETF Flows for 26 Jan: (data not available)
(ETF flow data is sourced from https://farside.co.uk/eth/ and reflects figures at the time of writing.)
*All prices are denominated in USD unless stated otherwise*
Written by Alexandar Artis
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