The top cryptocurrency, Bitcoin (BTC), is having difficulties after failing to close above the critical resistance level of $105,000. For Bitcoin, this price has served as a ceiling, halting additional increases.
As long-term holders (LTHs) chose to sell off their holdings, the situation deteriorated, increasing selling pressure and driving the price down.
Bitcoin investors lose patience
According to recent data, Bitcoin’s Liveliness—a metric that monitors the activities of long-term holders—has sharply increased. This increase implies that a large number of LTHs have liquidated their holdings in recent days. The change in LTH balances and an increase in total Coin Days Destroyed, which indicate a substantial movement of previously inactive BTC, corroborate this finding.
Selling LTHs has historically produced negative results because they are frequently regarded as the foundation of Bitcoin’s stability. This pattern has persisted throughout the weekend and into the present, contributing to the current price drop.
Bitcoin’s macro momentum indicates that there is still potential for a recovery despite the decline. One important valuation metric, the Network Value to Transaction (NVT) Signal, is presently low. This suggests that Bitcoin is cheap in its transaction volume, suggesting room for future expansion.
Even though the NVT signal is encouraging, for Bitcoin to recover, other market indicators must line up. Investors are not yet overtly pessimistic, indicating that if favorable circumstances materialize—such as a boost in purchasing activity or positive economic developments—sentiment may soon improve.
BTC price prediction: Preventing losses
Over the past day, the price of Bitcoin (BTC) has dropped by 3.88%, reaching $100,682. Short-term bearish sentiment was reinforced by this decline, which was mostly caused by LTH liquidations and Bitcoin’s inability to close above the $105,000 barrier mark.
At $100,000, a crucial psychological and technological level, the next important support is located. Bitcoin is probably going to recover from this support or momentarily hover around it. Losing this level, though, would push the cryptocurrency down to $95,668, increasing losses and strengthening pessimistic sentiment.
On the other hand, the pessimistic prognosis will be disproved if general market circumstances improve and Bitcoin recovers $105,000 as support. Bitcoin might rise above its all-time high (ATH) of $109,699 in such a situation, boosting investor confidence and opening the door for a fresh advance.
AI Coins Crash big as Chinese AI startup DeepSeek storms market
As Chinese AI startup DeepSeek challenges US AI dominance, AI coins like NEAR, NCP, RENDER, and FIL have all plummeted 8–10% today.
As China’s AI firm, DeepSeek swept the market by creating AI models at a fraction of the price the Silicon Valley giants are spending, AI Coins suffered a serious setback during Monday’s early trading hours in the Asia market. As the Nasdaq 100 futures saw a 330-point slump in the overnight trading session on Sunday, leading AI cryptocurrencies such as Near Protocol (NEAR), Internet Computer (ICP), Render (RENDER), and Filecoin (FIL) have fallen 8–10% today.
AI Coins Crash as Investors Panic
According to data from CoinMarketCap, the market for AI coins has plummeted by almost 7.66% in the past day, with the total market capitalization now below $44 billion. Additionally, the data indicates that the top AI currencies have experienced an average collapse of 8–10%.
Notably, this correction coincides with the wider collapse of the cryptocurrency market, as the price of Bitcoin falls below the critical support level of $100,000.
The primary cause of this is the dramatic rise in popularity of China’s DeepSeek AI business, which has taken the industry by storm thanks to its inexpensive infrastructure. Moreover, the chips used in its construction are far less expensive than those used by AI businesses in the United States. The Nasdaq 100 Futures have therefore dropped more than 2% to more than 470 points.
The current downturn in AI coins, however, is seen by professionals in the decentralized financial artificial intelligence (DeFAI) market as a buy-the-dip opportunity. Daniele, a well-known market expert, clarified how DeepSeek’s dominance will aid in the growth of the AI Coin sector. He wrote:
“If you’re selling AI coins due to DeepSeek models being cheap and open source, they are very helpful to scale AI Apps to Millions of users with low-entry barrier pricing. Is the best thing that could have happened to the industry”.
China’s DeepSeek AI model storms market
The Silicon Valley tech giants have been criticized by the Chinese AI startup. Large sums of money are usually required to train sophisticated AI models like GPT-4 or Claude; OpenAI and Anthropic have spent over $100 million on computers alone. These initiatives depend on enormous data centers that house thousands of GPUs, each of which costs upwards of $40,000—the equivalent of a factory requiring its power plant.
The Chinese AI startup, on the other hand, has drawn attention by outperforming GPT-4 and Claude for a fraction of the price, or under $6 million. Additionally, the AI chips used in its construction are significantly less sophisticated than those used by US AI businesses. Arthur Hayes, a former CEO of BitMEX, has questioned US AI dominance, pointing out:
“A thot: what if the rise of Deepseek causes global investors to question US exceptionalism. What if they question why they are over weight US tech vs the world and why they are over weight US bonds vs the world?”
Chip stocks in the United States have responded overnight as the DeepSeek app has become the most downloaded app on the Apple Store. Leading firms like Qualcomm (QCOM), Nvidia (NVDA), Arm (ARM), and Broadcom (AVGO) have had a 2-7% decline today, which has exacerbated the decline in AI coins.
Chip Stocks Overnight Reaction to DeepSeek:
1. Arm, $ARM: -5.5%
2. Nvidia, $NVDA: -5.3%
3. Broadcom, $AVGO: -4.9%
4. Super Micro, $SMCI: -4.6%
5. Taiwan Semi, $TSM: -4.5%
6. Micron, $MU: -4.3%
7. Qualcomm, $QCOM: -2.8%
8. AMD, $AMD: -2.5%
9. Intel, $INTC: -2.0%US markets are…
— The Kobeissi Letter (@KobeissiLetter) January 27, 2025
Challenging OpenAI’s market dominance
The decline in AI Coins coincides with the Chinese AI startup’s rapid ascent to the top of the Apple App Store’s free app rankings and rapid penetration into the global AI sector. Rate constraints don’t provide any major obstacles, and users have commended the DeepSeek API for its smooth operation and user-friendly interface. Discussions concerning its possible incorporation into agentic AI systems have been triggered by this.
Agentic AI was previously heralded by tech behemoth Nvidia as the next big development in artificial intelligence and a crucial area for future research. To argue that the Chinese player would be directly reducing the market share of OpenAI, which is valued at $10 billion, would be an understatement. Notably, last week’s severe outage of OpenAI’s ChatGPT caused the conversations to surge much higher.
According to recent results, DeepSeek has become a top performer in the AIME, MATH-500, and GPQA benchmarks. Even though ChatGPT continues to dominate coding benchmarks, the difference in performance between the two is quickly closing.
DeepSeek’s rapid progress indicates a change in the global AI landscape and underscores the mounting threat to American AI dominance. As a result, when the larger cryptocurrency market adapts to these events, the market for AI coins will likewise experience some volatility in the future.
Pepe coin price likely to crash 56% as whales sell 1.1 trillion PEPE
As whales sell off 1.1 trillion PEPE, the price of Pepe Coin is under bearish pressure, indicating possible drops in the face of market volatility.
The price of Pepe coins has dropped 17% in the last day and is currently trading at $0.000012. Last week, there was a 28% decline. The selling pressure from whales who have offloaded over a trillion tokens is one of the causes of this prolonged crisis and what could happen to PEPE next. How low can the price drop?
Pepe coin price breaks key support as whales sell 1.1 trillion PEPE
The price of Pepe Coin (PEPE) dropped below $0.000014 due to heavy selling pressure from well-known whales who sold off over 1.1 trillion PEPE.
Major whale transactions that contributed to the drop were identified by on-chain data. The address of a whale is 0xfBfC…07.Within the previous nine hours, 430 B PEPE—roughly $6.39 million—was put into Binance.
Market players made another noteworthy purchase.eth, who 24 hours earlier sent Binance 325.5 billion PEPE, or about $4.9 million.
Wallet 0xb1a2…6731 liquidated 200.88 billion PEPE for $2.85 million in USDC over the last two days, according to additional selling activity.
In keeping with the pattern, the whale 0xC7acJust two hours ago, BE36 made a deposit of 140.83 billion PEPE, or roughly $1.98 million, into Binance.
Significant price fluctuations show shifts in whale behavior that jeopardize Pepe Coin’s market stability. Since 1.1 trillion PEPE tokens joined the market, market exchanges are showing greater selling pressure, which also has an impact on the cryptocurrency’s subsequent price trend.
Many whales have recently sold off their entire $PEPE holdings.
0xfBfC…07Be deposited 430B $PEPE($6.39M) to #Binance 9 hours ago.
marketparticipant.eth deposited 325.5B $PEPE($4.9M) to #Binance 24 hours ago.
0xb1a2…6731 sold 200.88B $PEPE for 2.85M $USDC in the past 48… pic.twitter.com/oJlJpEUbtv
— Lookonchain (@lookonchain) January 27, 2025
PEPE reenters key range
The price of PEPE is currently down 17% during U.S. market hours, at $0.00001224 as of Monday, January 27. The meme currency continues to fluctuate between $0.00000633 and $0.00001461, staying within the trading range set since April 8, 2024.
PEPE has now dropped back into this zone after recently breaching above it, suggesting a possible additional decline.
According to technical analysis, $0.00000782 is the next significant support. A drop toward the bottom boundary of $0.00000633 can be triggered by a breach below this level. A significant 56% collapse from the current trading level would result from such a move.
There have been corrections in the cryptocurrency market today, with BTC falling below $100,000 and other leading coins trading lower.
When whale investors start liquidating their substantial positions, the price of pepe coins enters a precarious zone. Additional reductions in price stability result from the failure of essential price support levels. Because of the current adverse market attitude, traders should closely monitor whale actions before making any investments.
