Bitcoin, XRP, and Cardano bounce back from DeepSeek sell-off
Bitcoin and several other major cryptocurrencies, including XRP and Cardano, experienced a rebound after being impacted by the stock market sell-off initiated by China’s DeepSeek artificial intelligence. Following a sharp decline below $97,000 at the beginning of the week, Bitcoin struggled to surpass $100,000 until late evening in Europe and mid-afternoon in the US. However, the cryptocurrency market started to recover, with Bitcoin trading in a range between $102.5K and $103.3K since the early hours of Tuesday.
As of the latest update, BTC/USD has shown a 3.8% gain over 24 hours, reaching $102.9K. Ethereum has also risen by almost 4%, while XRP has surged by 11.6%, Solana by 5.3%, Dogecoin by 6.5%, and Cardano by 8.7%. Nigel Green, CEO of deVere Group, highlighted the unique value proposition of Bitcoin, emphasizing its decentralized nature that distinguishes it from tech stocks. Green stated that Bitcoin’s independence from the performance of specific companies or nations makes it resilient in times of geopolitical tensions and technological disruptions.
With ongoing economic rivalries and geopolitical uncertainties, Green believes that Bitcoin’s design allows it to remain insulated from external forces, operating beyond national boundaries and policies. This characteristic positions Bitcoin as a safe haven asset during turbulent times, potentially attracting capital flight from both the US and China. Investors seeking assets independent of government or corporate influence may turn to Bitcoin as a viable option in such circumstances, according to Green’s analysis.
The cryptocurrency’s neutrality and borderless nature align with the growing preference for assets unaffected by geopolitical tensions or economic turmoil. Bitcoin’s ability to function as a decentralized store of value sets it apart from traditional investments, allowing it to thrive in an environment marked by uncertainty and instability. The recent rebound in Bitcoin, XRP, and other cryptocurrencies reflects investors’ renewed interest in digital assets amid market volatility and global economic challenges.
