Bitcoin Withstands DeepSeek Dip And FOMC Volatility – How Close Is A New ATH?

Ash Tiwari

4 months ago

3 mins read

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In the past few days, Bitcoin (BTC) has withstood two key developments that could have derailed the cryptocurrency’s bullish momentum. Given Bitcoin’s resilience, analysts are now predicting a new BTC all-time high (ATH) in the coming weeks.

Bitcoin Defies DeepSeek Sell-Off, FOMC Uncertainty

Earlier this week, US stocks took a hit after Chinese AI firm DeepSeek unveiled its open-source LLM, raising concerns over the high market valuation of its American counterparts. As a result, the S&P 500 saw a strong sell-off, with NVIDIA leading the losses, dropping 16% in a single day.

Similarly, in its latest meeting, the Federal Open Market Committee (FOMC) left interest rates unchanged, in line with market expectations. While the hawkish stance was expected to deal another blow to crypto markets, BTC remained relatively unscathed after an initial dip.

At the time of writing, BTC is trading at $105,839, having essentially recouped all its losses from the DeepSeek-induced market crash. In fact, BTC has outperformed the S&P 500 over the past five days, surging 1.53%, compared to the latter’s 1.25% decline.

New BTC ATH In February?

Seasoned crypto trader Pentoshi commented on BTC’s strength, saying that the digital asset has held up well despite the turmoil. The trader added that they see no reason why BTC shouldn’t hit a new ATH soon.

Another Bitcoin enthusiast, Castillo Trading, noted that Bitcoin’s price structure “looks flawless.” They added that both lower- and higher-time frames suggest that BTC will likely go higher.

In a similar vein, crypto trader and entrepreneur Michael van de Poppe said that the market will likely see a new BTC ATH in the ‘coming weeks,’ potentially hinting at February as the target month.

Further, crypto trader Roman shared the following chart, commenting that “Stoch & RSI have plenty of room to break $108,000 resistance and head higher.” They added that bullish divergence on BTC is also playing out nicely.

For the uninitiated, both Stochastic Oscillator (Stoch) and Relative-Strength Index (RSI) are momentum indicators that help traders identify whether the underlying asset is oversold or overbought in current market conditions.

While projections for a new BTC ATH may be focused on the short-term, market cycle peaks are expected to occur in the summer of 2025. For instance, a recent report by Bitfinex forecasts that BTC could surge to $200,000 by mid-2025, amid shallow price pullbacks.

Meanwhile DeepSeek predicts that BTC may top out between $500,000 and $600,000 by Q1 2026. At press time, BTC trades at $105,839, up 3.1% in the past 24 hours.

Featured image from Unsplash, Charts from X and TradingView.com

Ash Tiwari

Ash is a dedicated crypto researcher and blockchain enthusiast with a passion for diving deep into the evolving world of decentralized technologies. With a background in writing and a natural curiosity for how digital assets are shaping the future, he has immersed himself in various sectors of the cryptocurrency space, including decentralized finance (DeFi), NFTs, and liquidity mining. His journey into crypto started with a desire to fully understand the technology behind it, leading him to explore and engage with these systems firsthand.

Ash’s approach to DeFi goes beyond surface-level research as he actively participates in decentralized protocols, testing their functionality to gain a deeper understanding of how they operate. From experimenting with staking mechanisms to exploring liquidity mining strategies, he is hands-on in his exploration, which allows him to provide practical, real-world insights that go far beyond theoretical knowledge. This immersive experience has helped him develop a comprehensive grasp of smart contracts, token governance, and the broader implications of decentralized platforms on the future of finance.

In the NFT space, Ash’s interest is driven by the technology’s potential to reshape ownership and creativity in the digital age. He has explored various NFT projects, gaining insights into how these digital assets function within different ecosystems. His focus is on understanding the evolving relationship between creators and communities, as well as the innovative uses of blockchain technology to establish authenticity and provenance in the digital world. Ash’s research in this area often touches on the intersection of culture, technology, and community-driven projects.

A key area of his expertise lies in liquidity mining, where he has engaged with various decentralized platforms to understand how liquidity provision contributes to the functionality and security of DeFi ecosystems. Ash’s hands-on involvement has allowed him to analyze the risks, rewards, and broader implications of liquidity pools, giving him a well-rounded perspective on this integral part of DeFi. His understanding of risk management and protocol design allows him to provide insights into how these systems can be navigated effectively, with an emphasis on both opportunity and caution.

When it comes to communicating these complex topics, Ash’s writing is grounded in clarity and depth. He excels at breaking down intricate blockchain concepts into easily digestible information for a wide audience. Whether explaining the workings of decentralized exchanges or outlining the future potential of blockchain technology, Ash ensures that his content is accessible to both those new to the space and experienced participants looking for deeper insights.

Beyond DeFi and NFTs, Ash explores a wide array of emerging blockchain applications. His research spans areas like cross-chain technologies, decentralized governance, and blockchain’s potential to integrate with traditional finance. He is continuously learning and adapting to the latest developments, ensuring that his insights are both timely and relevant. His interest extends to how these technologies are creating new possibilities for decentralization, transparency, and trust in a variety of industries.

Ash’s commitment to engaging with the crypto space firsthand gives him a unique perspective that goes beyond what can be learned from research alone. His practical involvement allows him to stay ahead of the curve, offering readers and enthusiasts a clear and comprehensive understanding of the rapidly evolving world of blockchain. Whether delving into the technical mechanics of DeFi or exploring the cultural impact of NFTs, Ash’s approach is always rooted in curiosity, research, and a desire to make this technology accessible to all.

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