DeepSeek, Fed meeting weigh on market

Hola folks!

Welcome back to our weekly crypto update. The global crypto markets were volatile in the past week as investor concerns about the impending US Fed meeting and an unlikely generative AI competitor emerging from China weighed. 

The benchmark crypto, Bitcoin, dipped below the $100K mark for the first time since President Trump took office, and the broader crypto market has followed suit. Read on to learn more about what led to the market downfall and what might be in store for the coming week.

Bitcoin slipped below $100,000 for the first time since Donald Trump returned to the presidential office, hitting a low of $97,777.77 as global markets grappled with shifting monetary policies and AI sector disruptions. 

The rapid rise of China’s DeepSeek, which dethroned ChatGPT in the US App Store, has stoked fears of intensified competition, adding to investor caution. All eyes are now on the Federal Reserve’s upcoming meeting, with markets pricing in just a 0.5% chance of even a minor rate cut, signaling a hawkish stance amid rebounding inflation indicators. Despite the turbulence, Bitcoin hodlers remain resilient, accumulating during dips, hinting at the long-term bullish sentiment.

On the regulatory front, Trump’s executive order on digital assets set the tone for innovation, creating a working group to bolster US leadership in crypto while tackling banking hurdles for Web3 firms. The order’s exclusion of the Fed and FDIC raised eyebrows, signaling a strategic shift. 

Coinbase’s Brian Armstrong called for a revamp of token listing processes, and Ethereum layer-2 teams doubled down on native rollups to streamline base-layer connectivity. As markets recalibrate, MicroStrategy's Michael Saylor signaled more BTC purchases, adding intrigue to an already action-packed week.

In Solana’s ecosystem, decentralized exchange Jupiter made headlines at its first-ever community event, Catstambul, with the acquisition of Moonshot, a meme coin platform, and a massive $3 billion JUP token burn. 

Jupiter’s strategic moves, including a 50% revenue buyback and recent airdrops, have ignited optimism, pushing JUP to $1.27. 

Meanwhile, Ethereum dominated NFT markets, clocking $106M in weekly sales as Immutable soared 26.97%. Collections like Azuki and Pudgy Penguins saw significant growth, but Solana’s Mad Lads stole the spotlight with a 132% sales surge.

Weekly price movement: 

• BTC $99,114 ⏬ 8.57%  

• SOL $224 ⏬ 15.30%

• JUP $0.9734 ⏬ 4.87% 

• PENGU $0.02127 ⏬ 17.37% 

(All data here as of 4.00 p.m., 27 January 2025)

Before we conclude, here’s a quick look at some important news from around the crypto world.

• Bitcoin (BTC) dropped to under $99,000 early Monday as traders took profits ahead of the first US FOMC meeting this year. Read more here.

• Trump issued an executive order on crypto that directs his administration to establish friendly policies to put the industry on solid US footing and look at establishing a “digital asset stockpile.” Read more here. 

That’s it for now. Thanks for sticking around.

See you later, folks! 👋

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