Weekly Crypto: A.I. Impacts Markets, DeepSeek Triggers Selloff, States Push Bitcoin Reserves

Bitcoin rebounded from a $99,000 dip to $104,700 this week, weathering a tech sector selloff sparked by Chinese AI firm DeepSeek’s low-cost models. The Federal Reserve’s decision to maintain rates at 4.25%-4.5% stabilized markets. Technical indicators turned bullish, with the 50-day moving average crossing above the 200-day and the RSI hitting 68.

Donald Trump’s executive order banning central bank digital currencies (CBDCs) reshaped U.S. crypto policy, favoring private-sector solutions like stablecoins. The order prohibits Fed-issued digital dollars and establishes a working group to streamline regulations and explore a national Bitcoin reserve using seized assets.

Cardano activated its Plomin hard fork on January 29, empowering ADA holders with governance control over protocol upgrades and a $7.2 billion treasury. Despite this milestone, ADA traded flat at $0.93.

Institutional interest in Bitcoin surged as multiple U.S. states advanced legislation to establish strategic cryptocurrency reserves. Texas, Arizona, Illinois, Utah, and Pennsylvania led the charge, proposing bills to allocate portions of state funds to Bitcoin holdings.

These moves align with Trump’s push for a national Bitcoin reserve, signaling a broader shift toward decentralized financial strategies. The US state-level momentum clashes with the European Central Bank’s rejection of Bitcoin as a sovereign asset.

Weekly Crypto: A.I. Impacts Markets, DeepSeek Triggers Selloff, States Push Bitcoin Reserves

The Czech National Bank proposed a $7 billion Bitcoin reserve, while Norway’s sovereign wealth fund increased indirect BTC exposure through holdings in MicroStrategy and Coinbase. VanEck predicts Bitcoin could reach $180,000 by late 2025.

AI’s impact on crypto markets intensified as DeepSeek’s models triggered volatility, yet also fueled trading algorithms like QuantConnect’s bot, boosting AGIX/BTC volume by 30%. AI tokens now show a 0.65-0.72 correlation with Bitcoin.

Trump’s CBDC ban positions dollar-backed stablecoins as global alternatives, challenging China and Europe’s digital currency initiatives. The order revokes Biden’s policies and prioritizes private innovation, potentially accelerating corporate Bitcoin adoption.

Looking ahead, Bitcoin’s 2025 outlook remains bullish, with targets ranging from $122,000 to $500,000. Institutional inflows, ETF approvals, and post-halving supply dynamics drive predictions. As states forge ahead with Bitcoin reserve plans, debates intensify over volatility risks and custody protocols, reflecting the growing role of cryptocurrencies in reshaping finance and public policy.

LatAm Markets: Live Signals → — real-time movers, turnover leaders and FX across Latin America.