After dipping below $100K due to the DeepSeek AI breakthrough, Bitcoin has made a strong comeback, surging past $104K as traders find confidence in the Federal Reserve’s decision to keep interest rates steady. This unexpected recovery has sparked renewed discussions on how artificial intelligence (AI) and Bitcoin could actually complement each other rather than compete.
Let’s break down the biggest crypto developments from the past 24 hours:
DeepSeek’s AI Breakthrough Might Be a Bitcoin Catalyst
While some feared that DeepSeek’s advanced AI model could overshadow Bitcoin, Standard Chartered has presented a different perspective. The bank suggests that DeepSeek’s more efficient AI development approach could reduce global computing costs, lowering inflation.
Why does that matter for Bitcoin? Lower inflation typically strengthens Bitcoin as an inflation hedge, making it even more attractive to investors. Instead of AI being a threat, it could be the unexpected force that helps drive Bitcoin prices higher.
Trump’s Campaign Manager Joins Coinbase’s Advisory Council
In a move that has raised eyebrows, Trump’s 2024 co-campaign manager, Chris LaCivita, has joined Coinbase’s Global Advisory Council, alongside former Senator Kyrsten Sinema and ex-New York Fed President Bill Dudley.
With the SEC’s legal battle against Coinbase now in limbo, some believe that LaCivita’s inclusion signals a major shift in the crypto regulatory landscape. He has openly supported making the U.S. a leader in crypto innovation, a sharp contrast to the previous administration’s stance on digital assets.
Could this mean Coinbase’s battle with the SEC is nearing its end?
TRUMP Token Now Accepted for Real-World Purchases
Former U.S. President Donald Trump’s official meme coin ($TRUMP) just got a major use case—it can now be used to buy Trump-branded sneakers, watches, and perfumes across multiple online stores.
The TRUMP token has already amassed over 700,000 holders, and this new integration is a significant step toward real-world crypto adoption. But the bigger picture here is that Trump Media and Technology Group is reportedly expanding into financial services and crypto investments, hinting at a larger role for digital assets in Trump’s economic strategy.
Is TRUMP officially a utility token now?
Bitcoin’s Future: $75K Dip or $250K Surge?
Market analysts are divided on Bitcoin’s next move. Derive Trading’s latest report suggests there is a 9.2% probability that Bitcoin could test $75K before April based on increasing market volatility.
At the same time, BitMEX founder Arthur Hayes predicts a “mini financial crisis” that could ultimately push Bitcoin to $250K in the long run.
With implied volatility spiking from 52% to 76%, traders are hedging against possible corrections while still eyeing long-term gains.
How soon can Bitcoin hit $250K?
Crypto.com Delists USDT and 9 Other Tokens in Europe
In a major shift, Crypto.com is set to delist Tether (USDT) and nine other tokens in Europe by January 31 to comply with the MiCA regulations. Users have been given until March 31 to convert their assets into MiCA-compliant stablecoins or cryptocurrencies.
Among the affected tokens are Wrapped Bitcoin (WBTC) and Dai (DAI), leaving many European crypto users scrambling for alternative options.
What are the best alternatives to USDT in the European market?
Final Thoughts: AI and Crypto’s Growing Intersection
Bitcoin’s resilience above $104K and its faster-than-expected rebound show that AI and crypto don’t have to be rivals. With lower inflation benefiting Bitcoin, AI could actually help drive digital assets higher rather than weaken them.
Meanwhile, regulatory shifts, institutional adoption, and real-world crypto integrations are setting the stage for major developments in the market.
Will Bitcoin continue its upward momentum, or is a correction coming? Drop your predictions below!
