The global crypto market cap stands at $3.57 trillion, reflecting a 1.16% increase over the last 24 hours. However, total market volume has dropped 13.75% to $106.48 billion, with DeFi accounting for $7.77 billion (7.30%) of the total. Stablecoins dominate trading activity, with a 90.05% share at $95.88 billion in 24-hour volume.
Quick Take
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DeepSeek’s AI launch triggered a broader market sell-off, affecting both tech stocks and cryptocurrencies.
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Tether’s integration into Bitcoin Lightning Network is expected to enhance stablecoin adoption and transaction efficiency.
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MicroStrategy CEO Michael Saylor’s Bitcoin strategy remains a focal point, with his company now worth $84 billion.
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Crypto hacks surged in January 2025, with losses exceeding $73.9M, highlighting ongoing security vulnerabilities.
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Bitcoin faces resistance at $106,500, with macroeconomic uncertainty weighing on its price action.
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XRP continues its strong uptrend, outperforming the market with a 50% rally in January.
Crypto Fear and Greed Index | Source: Alternative.me
Bitcoin remains the leader with a 58.13% market dominance, though it has declined by 0.45% over the past day. The Crypto Fear and Greed Index has surged to 76 (extreme greed), up from 70 (greed) yesterday, indicating strong bullish sentiment despite market turbulence.
Top Crypto Gainers
Crypto |
24h Gain |
33.77% |
|
25.61% |
|
24.37% |
|
17.26% |
|
15.62% |
Michael Saylor Makes Forbes Cover, Trump’s Pro-Crypto Stance Support Crypto Market
The cryptocurrency market faced turbulence today, with Bitcoin’s price experiencing volatility following a broader risk-off sentiment in traditional markets. DeepSeek’s AI model launch spooked investors, triggering a sell-off in tech stocks, which rippled into the crypto market. Meanwhile, Tether announced the integration of USDT into the Bitcoin Lightning Network, a move expected to enhance transaction efficiency and scalability. Additionally, Bitcoin’s price fluctuated amid geopolitical and macroeconomic uncertainties, while XRP outperformed the broader market, fueled by regulatory clarity and increased institutional adoption.
Michael Saylor on Forbes Cover | Source: Forbes
Adding to today’s market buzz, MicroStrategy CEO Michael Saylor graced the cover of Forbes under the title “The Bitcoin Alchemist”, highlighting his pivotal role in Bitcoin adoption. Saylor’s strategic approach turned MicroStrategy into the largest Bitcoin whale, amassing 471,107 BTC worth approximately $50 billion. His influence extends beyond corporate investments, as his financial engineering strategy—issuing convertible bonds to fuel Bitcoin acquisitions—has made MicroStrategy a dominant force in the market. With the company now valued at $84 billion, despite holding $48 billion in BTC, Saylor’s approach has drawn admiration and skepticism from Wall Street alike.
The growing political discourse around Bitcoin also took center stage, with former U.S. President Donald Trump reaffirming his stance on making America the “crypto capital of the planet.” His pro-crypto policies are expected to further influence the industry, potentially shaping regulatory frameworks favorable to institutional adoption.
Crypto hacks in January surge to over $73 million | Source: ImmuneFi
Meanwhile, crypto hacks surged in January 2025, with $73.9 million in losses from 19 attacks, according to Immunefi. The largest breaches included Phemex ($69.1M) and Moby Trade ($2.5M). BNB Chain was the most targeted network, responsible for 50% of on-chain losses, followed by Ethereum at 25%. These incidents underscore the ongoing security challenges within the industry and the need for enhanced blockchain security measures.
Read more: Top 10 Crypto Scams to Avoid in the Bull Run 2025
Why DeepSeek Caused a Crypto Market Crash
Coinmarketcap 100 Index Chart | Source: Coinmarketcap
DeepSeek, a new AI model developed in China, caused shockwaves across financial markets. The AI model, developed at a fraction of the cost of U.S.-based competitors, raised concerns over the competitive edge of American tech giants. As a result, investors dumped high-risk assets, leading to a sharp decline in stock prices, particularly among the Magnificent Seven tech firms. This sell-off extended to the cryptocurrency market, reinforcing Bitcoin’s correlation with equities.
Major cryptocurrencies saw significant declines:
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Bitcoin (BTC) fell by 6% following DeepSeek’s debut.
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Ethereum (ETH) dropped 7%, while smaller altcoins posted double-digit losses.
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Crypto-related stocks, including MicroStrategy and Coinbase, also faced declines.
Although DeepSeek has no direct impact on crypto, its market disruption led to de-risking among investors. As institutional players pulled back from high-beta assets, Bitcoin and other cryptocurrencies faced sell pressure. However, analysts suggest the downturn is temporary, with recovery likely as risk appetite returns.
Tether Integrates into Bitcoin Lightning Network
Source: X
Tether announced a major development by integrating its USDT stablecoin into the Bitcoin Lightning Network. This integration will leverage the Taproot Assets protocol, enhancing the speed and cost efficiency of USDT transactions. The move is expected to drive further adoption of Bitcoin’s Layer 2 scaling solution and improve financial inclusivity in emerging markets.
Key aspects of the integration:
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Faster and cheaper transactions: Lightning Network enables instant settlements with minimal fees.
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Increased adoption: Merchants and businesses using Bitcoin payments can now accept USDT seamlessly.
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Enhanced liquidity: The move is expected to strengthen the Bitcoin ecosystem’s stablecoin liquidity.
Tether CEO Paolo Ardoino emphasized that the integration aligns with Tether’s mission of making digital dollars more accessible to users worldwide. Meanwhile, Lightning Labs CEO Elizabeth Stark highlighted how this step will facilitate microtransactions and cross-border payments, reinforcing Bitcoin’s role in the global financial system.
Can Bitcoin Overcome Resistance at $106,500?
Bitcoin’s price remains volatile, trading around $104,800, after briefly surpassing $106,000 earlier in the day. The price rally faced resistance due to renewed concerns over global trade policies and economic uncertainties.
Key factors Influencing BTC Price
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Trump’s tariff threats: U.S. President Donald Trump’s renewed call for a 25% tariff on Mexico and Canada added pressure on risk assets, including Bitcoin.
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Institutional accumulation: Bitcoin ETFs have continued to see inflows, but overall institutional demand has slowed compared to previous months.
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FOMC meeting impact: The Federal Reserve’s recent statements suggested a cautious stance on interest rates, impacting market sentiment.
Key Resistance & Support Levels
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Immediate resistance: $106,500
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Key support: $98,000
A decisive move above $106,500 could signal further upside, while a drop below $98,000 may trigger a larger correction.
XRP Rallies 50% in January, $4 Next Level to Watch
XRP has been one of the standout performers in the crypto market, posting a 50% rally in January. The surge is attributed to regulatory approvals and increased adoption.
Reasons Behind XRP’s Rally
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Regulatory clarity: Ripple received approval for its RLUSD stablecoin from the New York Department of Financial Services (NYDFS).
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Institutional adoption: Financial institutions, including Ondo Finance, have integrated Ripple’s technology.
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Technical breakout: XRP’s price action suggests a potential run towards $4 in the near term.
Key Levels to Watch
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Short-term resistance: $3.50
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Bullish target: $4
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Support levels: $3.00 and $2.90
Conclusion
The crypto market remains in flux, influenced by macroeconomic factors, technological advancements, and evolving regulatory landscapes. While DeepSeek’s launch triggered a temporary sell-off, investor sentiment remains bullish, as indicated by the Crypto Fear and Greed Index at 76. Tether’s integration into the Lightning Network marks a significant step for Bitcoin’s Layer 2 ecosystem, potentially driving further adoption. Bitcoin continues to face strong resistance at $106,500, while XRP’s impressive rally highlights growing institutional interest. Moving forward, traders and investors should stay vigilant as market dynamics continue to evolve rapidly.