Cryptocurrency markets experienced notable volatility on Monday, influenced by concerns regarding the Chinese AI model DeepSeek’s effect on tech stocks. This led to significant declines in major cryptocurrencies, prompting traders to reassess their strategies.

Bitcoin declined by 2.9%, trading at $101,809, while Ethereum fell by 3.8% to $3,190. Other significant cryptocurrencies also suffered losses:

• Solana: down 6.1%
• Dogecoin: dropped 4.6%

Data indicated an 8% decrease in large transaction volumes and a 7% reduction in daily active addresses. Additionally, transactions over $100,000 decreased from 8,669 to 8,000 in one day, and exchanges reported a 22.7% decline in netflows. In the past 24 hours, over 344,000 traders were liquidated, amounting to nearly $1 billion, while Bitcoin derivatives trading volume surged by 293%.

An industry expert remarked that Bitcoin’s recent downturn is part of a typical cycle, advising traders to adopt a long-term perspective instead of concentrating on short-term fluctuations. An analyst drew parallels between the current market conditions and those of 2017, suggesting that if 2025 resembles that year, Bitcoin could potentially revisit its 2024 high of around $73,000. Historical trends indicate that the cycle peak is anticipated between September and October 2025, suggesting that the market is on track.

📎 Related coverage from: benzinga.com