Bitcoin recovers to $ 102,000

After the fall of the crypto market caused by the announcements of the Chinese AI company DeepSeek, bitcoin BTC $64,572.65 Mezo Wrapped BTC -0.35% Market capitalization $76.72 million VOL. 24 hours $0.7 billion has recovered, reaching over $ 102,000. This comes after a weekend of market volatility that saw $ 860 million worth of assets liquidated. Currently, bitcoin is still 6.5% below its January high of $ 109,000.

Kronos Research analyst Dominic John explained that investors are reconsidering their strategies, focusing on the long-term impact of AI democratization on the market. Along with bitcoin, Dogecoin DOGE $0.07 Binance-Peg Dogecoin -1.72% Market capitalization $0.18 billion VOL. 24 hours $18.16 million grew by 2.6% to $ 0.33, and growth was also demonstrated by BNB $592.24 BNB -1.49% Market capitalization $78.87 billion VOL. 24 hours $53.46 million (3.6%) and XRP $1.04 Binance-Peg XRP -2.89% Market capitalization $0.34 billion VOL. 24 hours $75.58 million (3.2%).

The market’s reaction to DeepSeek was triggered by the launch of their open AI model Janus-Pro-7B, which offers an efficient approach to model training. The previous panic related to potential competition from DeepSeek led to a significant collapse in NVIDIA shares, which lost $ 600 billion in capitalization, causing a $ 1 trillion decline in the technology sector.

Analysts at Morgan Stanley believe that DeepSeek does not pose a threat to established players but offers an alternative approach to model training. Meanwhile, US President Donald Trump has called for a focus on innovation to remain competitive, calling the situation a «potential threat» to US dominance in the AI field.

Nevertheless, bitcoin’s recovery and positive market sentiment demonstrate the resilience of the cryptocurrency sector even amid geopolitical and technological challenges.