Bitcoin’s Descent: Will DeepSeek’s Shadow Dethrone the King?

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Since the October catastrophe, the bond between equities and crypto has grown tenuous, like a fragile thread in a storm. Though the crash devoured billions, crypto’s fate was more dire, a tragic ballet of losses. The NASDAQ, that paragon of resilience, rose 2.4% in Q4, while Bitcoin [BTC] wept 6.3%, revealing the heart’s preference for the familiar over the fantastical.

Indeed, the stock market now quivers like a nervous child, awaiting another “DeepSeek-led” tragedy. Naturally, Bitcoin, that fickle lover, finds itself under the spotlight, its past reactions to such spectacles etched in memory like a haunting melody.

For context, the Chinese AI startup DeepSeek, that enigmatic prodigy, is rumored to unveil its next-gen model. Last year, its debut of DeepSeek-R1 in January 2025 triggered a cascade of despair. NVIDIA [NVDA], that once-mighty titan, fell 17% in a day, a single tear wiping out $600 billion. The Nasdaq 100, that stoic elder, wept 3%, losing $1 trillion. Microsoft, that proud phoenix, faltered 5%-6%, its wings clipped by the weight of fear.

Notably, crypto, that eternal optimist, also wept, erasing $330 billion as Bitcoin and altcoins plummeted 8%-15% in a day. This spectacle underscores how stock market tragedies now seep into crypto’s veins, making the impending DeepSeek news a drama worthy of Shakespeare.

Bitcoin Faces a Crucible as Market Anxiety Swells

Since the October calamity, sentiment has emerged as the market’s new oracle. Simply put, the crypto world now teeters on the edge of capitulation, not due to crypto’s own sins, but because macroeconomic chaos forces capital to flee, like a frightened deer.

Illustrating this, the Bitcoin Fear & Greed Index lingers in the red, a mournful dirge of persistent dread. Consequently, even the faintest tremors in equities can morph into a tempest, amplifying price swings with the fury of a vengeful ghost.

Notably, the market already whispers of a $60k collapse. At the same time, rising FUD around DeepSeek, historical ghosts of wipeouts, Bitcoin’s relative weakness compared to equities, and a fragile soul all suggest this positioning is no accident.

Instead, macro data and market setups reveal that Bitcoin’s recent dance has been choreographed by macro volatility, underscoring why another DeepSeek event could likely cast BTC into the abyss of that key support zone.

Final Summary

  • Bitcoin and crypto are vulnerable as macro volatility drives capital from risk assets, with the Fear & Greed Index trapped in the shadows of despair.
  • Historical trends and growing FUD around DeepSeek hint that another major event could likely plunge BTC below $60k.

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2026-02-25 20:08