Once again, Bitcoin price is feeling the pressure dropping under $100k, which has been attributed to the emergence of Deepseek, a new AI giant from China, and its tremors across the international markets.
Deepseek appears to be new competitive technology that could undermine USA’s strategic concentration of power in AI, and this is what is causing the traders to focus more on this.
As per QCP Capital, Deepseek could undermine the U.S. equity markets with its cost-effectiveness and open-source technology. Some controversial considers have also been made around “Strategic Bitcoin Reserve” concepts to mitigate these risks, but no efforts have been done yet.
Forecasting analysts presume that until this reserve is confirmed as real, the price of Bitcoin isn’t breaking any higher.
On the other hand, call options are busy in the markets ahead of the FOMC meeting coming on 30 January. QCP suspects that Bitcoin Is going to stay in this price now until if Trump does something like tariffs and other restrictions, because if he does, Bitcoin will tolerate that pressure relatively.
Russia’s largest power grid operator Rosseti to support Bitcoin mining
Rosseti, Russia’s largest state-owned electricity transmission company, is trying to venture Bitcoin mining and thus intends to start using power centers which are not fully operational. The aim is to increase revenue while fully utilizing energy potential.
Equipped with modern tools that facilitate monitoring and management of electricity consumption, Rosseti will concentrate on getting miners linked with power centers that don’t get a lot of traffic. It will enable the use of extra capacity, boost income from tariffs, and help the regional economy with taxes.
Additionally, the company plans to create some custom tariffs to stimulate demand and promote the growth of mining. Russian Bitcoin miners, on the other hand, witnessed a surge after president
Putin’s legislation allowed the establishment of crypto mining operations that tax exempting the mines in the latter part of November. Still, fears that locals will overload their power grids put mining bans in areas with lower energy availability such as Dagestan, Chechnya, and some regions of Siberia during the height of demand.
Crypto ETF products see $1.9b weekly inflow as Trump backs Bitcoin reserve idea
Crypto ETF products received a significant boost after Trump’s endorsement of the Bitcoin reserve concept, leading to inflows of $1.9 billion in a week. It raised the annual inflow figure to $4.8 billion, according to a CoinShares report dated January 27. Most of the inflows were in Bitcoin, which garnered $1.6 billion, approximately 92% of the total.
The year-to-date investment in Bitcoin reached $4.4 billion. Short Bitcoin ETFs also recorded inflows of $5.1 million as traders anticipated market corrections after Bitcoin’s rise.
The U.S. was the largest contributor as they recorded inflows of $1.7 billion, followed by Canada ($31 million), Switzerland ($35 million), and Germany ($23 million). Ethereum managed to recover strongly with inflows of $205 million, now that the rough start of the year is behind us.
XRP was able to bring in $18.5 million, keeping the momentum since the new all time high. Also, smaller altcoins Solana, Chainlink, and Polkadot registered noteworthy inflows of $6.9 million, $6.6 million, and $2.6 million respectively.
Butterfill explained that the increase is in line with their expectations for the market and said that it is due to excitement about Bitcoin serving as a reserve asset. He described the week of September 25 as the most significant week on memory,
at least for the short term, as now 37 of all activity of centralized exchanges take place in the United States, and active trading volume has grown from 1.63 billion to 25 billion. This sentiment, however, is not unanimous as there is expected to be a debate regarding Bitcoin and future reserves for a long time, Continuing with the Ripple theme
Pierre Rochard of VP of Riot Platforms accused them of lobbying against the Strategic Bitcoin reserve arguing that they are spending massive amounts of money trying to undermine it.
