Crypto assets saw a sharp decline overnight along with a decline in technology stocks led by Nvidia on the most efficient artificial intelligence model DeepSeek.
With Bitcoin (BTC) at one point falling from Sunday’s high of $105,000 to below $98,000 before bouncing back to its current level just under $100,000, some analysts have warned that this could be the start of a deeper decline.
Among those taking the other side of that trade is Jeffrey Kendrick, global head of digital assets research at Standard Chartered.
“Buy the dip,” he said in a report Monday morning.
Kendrick warned one week ago of a potential 10%-20% correction thanks to markets factoring in excessive expectations regarding Trump’s cryptocurrency executive order and strategic reserve. The overnight selling likely took care of much of this, he said.
While there may be more pain ahead this week with major US tech companies reporting earnings this week and the results of the Federal Reserve’s January meeting on Wednesday, Kendrick took note of the rapid decline in US Treasury yields – a yield approaching… The 10-year bond is now at 4.5% – where a lot of downward movement is indicated.
Although there is no significant near-term price increase from the Trump administration’s digital asset actions, the benefits should spread across the sector over the coming weeks and months through boosting institutional asset flows.
LondonCryptoClub analysts made a similar observation, seeing the cryptocurrency sell-off as a knee-jerk reaction to a key event.
“Deepseek Chaos.” [fear, uncertainty, doubt] “It’s a classic shoot first, ask questions later process,” LondonCryptoClub analysts said He said. “Such flows amid a still-constructive fundamental macro story that typically signals local lows to the upside.”
“Be careful today, because large-scale de-risking can be too mechanical and haphazard,” they added. “But that’s pretty much BTFD [buy the **** dip] “The market is still there.”
At press time, Bitcoin was trading down more than 4% over the past 24 hours at $99,800. The tech-heavy Nasdaq 100 fell 3%, led by a 15% decline for Nvidia stock (NVDA).
