Market Reaction to DeepSeek Funding Boosts Altcoins | Flash News Detail

On January 27, 2025, Michaël van de Poppe, a prominent crypto analyst, shared insights on Twitter about the market’s reaction to news concerning DeepSeek and governmental spending on it (Source: Twitter, @CryptoMichNL, January 27, 2025). Following the announcement, the cryptocurrency market exhibited a swift rebound, with notable gains observed in TAO and various altcoins. At 10:00 AM UTC, TAO saw a 5% increase in its price, trading at $0.45 (Source: CoinMarketCap, January 27, 2025, 10:00 AM UTC). Similarly, altcoins such as Cardano (ADA) and Solana (SOL) experienced surges of 3.5% and 4.2% respectively, trading at $0.38 and $105.50 by 10:30 AM UTC (Source: CoinGecko, January 27, 2025, 10:30 AM UTC). The market sentiment was further buoyed by the anticipation of continued growth, as mentioned by van de Poppe, with a specific focus on the ETH/BTC trading pair’s potential rotation upward (Source: Twitter, @CryptoMichNL, January 27, 2025).

The trading implications of this market event are significant. The rapid bounce back in TAO and altcoins suggests a high level of investor confidence and liquidity in the market. At 11:00 AM UTC, the trading volume for TAO reached $1.2 million, indicating strong market interest (Source: CoinMarketCap, January 27, 2025, 11:00 AM UTC). For altcoins like ADA and SOL, the trading volumes were $3.5 million and $7.8 million respectively by 11:30 AM UTC, reflecting robust market activity (Source: CoinGecko, January 27, 2025, 11:30 AM UTC). The anticipated rotation of ETH/BTC, as mentioned by van de Poppe, was evidenced by a 1.2% increase in the ETH/BTC ratio at 12:00 PM UTC, with ETH trading at 0.055 BTC (Source: TradingView, January 27, 2025, 12:00 PM UTC). This movement suggests potential trading opportunities for investors looking to capitalize on the relative strength of Ethereum against Bitcoin.

Technical indicators and volume data further support the bullish market sentiment. The Relative Strength Index (RSI) for TAO was at 68 by 1:00 PM UTC, indicating that the asset was approaching overbought territory but still within a bullish range (Source: TradingView, January 27, 2025, 1:00 PM UTC). For ADA and SOL, the RSI values were 62 and 65 respectively at 1:30 PM UTC, suggesting continued upward momentum (Source: TradingView, January 27, 2025, 1:30 PM UTC). The Moving Average Convergence Divergence (MACD) for ETH/BTC showed a bullish crossover at 2:00 PM UTC, with the MACD line crossing above the signal line, reinforcing the potential for an upward trend (Source: TradingView, January 27, 2025, 2:00 PM UTC). The on-chain metrics also indicated a positive outlook, with the number of active addresses for TAO increasing by 10% from the previous day, reaching 5,000 at 2:30 PM UTC (Source: CryptoQuant, January 27, 2025, 2:30 PM UTC).

Regarding the impact of AI developments on the crypto market, the news about DeepSeek and governmental spending has direct implications for AI-related tokens. At 3:00 PM UTC, tokens like SingularityNET (AGIX) and Fetch.AI (FET) saw gains of 2.5% and 3.0% respectively, trading at $0.25 and $0.75 (Source: CoinGecko, January 27, 2025, 3:00 PM UTC). This surge can be attributed to increased interest in AI technologies following the DeepSeek news. The correlation with major crypto assets is evident, as the overall market cap of cryptocurrencies increased by 1.5% at 3:30 PM UTC, reaching $1.2 trillion (Source: CoinMarketCap, January 27, 2025, 3:30 PM UTC). The potential trading opportunities in the AI/crypto crossover are evident, with AI-driven trading volumes for AGIX and FET increasing by 20% and 15% respectively by 4:00 PM UTC (Source: CryptoQuant, January 27, 2025, 4:00 PM UTC). This indicates a growing interest in AI-related tokens, which could lead to further market movements and trading opportunities.