The Chinese AI engine DeepSeek triggered worldwide market volatility which caused Bitcoin to drop under $100,000 in value following Donald Trump’s U.S. presidency inauguration. The world’s largest cryptocurrency reached $98,046 on Jan. 27 as broader market uncertainty grew from artificial intelligence competition and questions about Federal Reserve policies.
Deep Seek overtook ChatGPT on Apple’s U.S. App Store, triggering market shifts as investors moved to safer assets amid rising AI demand and expected Fed tightening, according to Bitget Wallet COO Alvin Kan. Cryptocurrency losses reached about $864 million during market turmoil while Bitcoin long positions exceeded $250 million said CoinGlass research.
Ethereum Rollups Impact Market Security
The deployed technological base)/native rollups system defended by Ethereum Layer 2 developers would strengthen network security while reducing its fragmentation problems. Based rollups enable Ethereum validators to take over block-building duties from centralized sequencers while enhancing decentralization according to Base lead Jesse Pollak during a Jan. 25 call.
Optimism Foundation Director Ben Jones underlined the fundamental requirement for uniting Ethereum base-layer functionality with Layer 2 solutions. The proposed evolution threatens to replace existing Sequencer-centric models at Arbitrum and Optimism by shifting transaction processing duties to decentralized network validators.
For the 12th time in a row MicroStrategy co-founder Michael Saylor published his Bitcoin tracker to update his audience before confirming additional BTC acquisitions. Imagine how staggering the growth of MicroStrategy has become: their recent 11,000 Bitcoin acquisition expanded their total 461,000 BTC quantities to regain a staggering $48.4 billion worth.
SaylorTracker reports MicroStrategy has obtained a 65% return through its Bitcoin holdings since the initial investment which now includes $19 billion in unrealized capital gains. The MicroStrategy CEO continues to show support for cryptocurrency by advising his 4 million X subscribers to “think about tomorrow.”
