Bitcoin recovers to $ 102,000

After the fall of the crypto market caused by the announcements of the Chinese AI company DeepSeek, bitcoin BTC $74,425.13 Mezo Wrapped BTC -1.85% Market capitalization $99.64 million VOL. 24 hours $0.89 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 $0.09 Binance-Peg Dogecoin -1.13% Market capitalization $0.24 billion VOL. 24 hours $0.11 billion grew by 2.6% to $ 0.33, and growth was also demonstrated by BNB $620.18 BNB -1.35% Market capitalization $83.59 billion VOL. 24 hours $63.95 million (3.6%) and XRP $1.41 XRP -1.82% Market capitalization $86.52 billion VOL. 24 hours $0.13 billion (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.