(MENAFN- crypto Breaking)
Yesterday saw a significant decline of 3% in the nasdaq as China's budget-friendly AI model, DeepSeek, created ripples in the technology sector, leading to a sharp drop in US chipmakers. Concurrently, bitcoin (BTC ) also experienced a dip down to $97,777 before rebounding and climbing back above the crucial $100,000 mark.
Bitcoin Shows Strength Amid NASDAQ Decline
The resilience displayed by Bitcoin amidst the turmoil in the stock market has been described as 'extremely optimistic' by Bitwise's European Head of Research, Andre Dragosch. Pointing out that the primary digital asset has outperformed the NASDAQ in the last two days and is now demonstrating minimal downside risk.
It is important to note that since the drop to $97,777, BTC has seen an increase of nearly $5,000, currently trading at $102,758. In contrast, the S&P 500 closed its previous trading session with a 1.5% decrease.
The divergence between BTC and the stock market is further emphasized by varying investor sentiments. The 'Fear & Greed Index' indicates that fear lingers among stock market investors at 44/100 after the recent downturn.
Conversely, the crypto market sentiment stands at 72/100, leaning towards greed. However, this may imply that the crypto market is trailing the stock market and might undergo further decline while the stock market stabilizes.
Keith Alan, co-founder of Material Indicators, shared on X that he viewed BTC 's brief decline as an opportunity to buy the dip and added to his BTC holdings. Alan remarked:
Similarly, experienced crypto trader Rekt Capital shared insights on BTC 's current price momentum, stating that the digital asset is still in the early stages of its parabolic phase for this market cycle. Traditionally, this phase lasts approximately 300 days on average, with BTC currently being at day 82.
Is BTC at its Peak Yet?
Despite reaching a new all-time high of $108,786 on January 20, some analysts believe that Bitcoin 's peak is yet to come. According to Stockmoney Lizards' analysis, BTC could reach a cycle peak of $400,000 by November 2025.
A further upward trend for BTC seems plausible as 'whales' have begun accumulating the cryptocurrency since Donald Trump's inauguration. Other forecasts suggest that BTC could peak at $249,000 under the Trump administration.
Looking ahead, BTC 's value could potentially reach $1.5 million by 2035 according to Metcalfe's Law. Presently, BTC is trading at $102,758, marking a 1.1% increase in the past 24 hours.
Crypto Investing Risk Warning
Crypto assets are highly volatile. Your capital is at risk.
Don't invest unless you're prepared to lose all the money you invest.
This is a high-risk investment, and you should not expect to be protected if something goes wrong.
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