Yesterday marked a significant shift in global markets following the launch of DeepSeek, China's competitor to OpenAI's ChatGPT. The debut impacted broader markets, including NASDAQ, influencing the cryptocurrency sector.
Bitcoin and Ethereum: Major Outflows
James Butterfill provided data showing that Bitcoin and Ethereum experienced major outflows from their ETPs, totaling $442 million and $99 million respectively. The combined outflows reached $534 million, one of the largest single-day figures in recent months.
XRP Stands Out Amid Sell-Off
In contrast to Bitcoin and Ethereum, XRP saw significant growth, registering $2.1 million in ETP inflows on the same day. This trend demonstrated XRP's resilience and attracted investor attention. Large wallets acquired 120 million XRP during the dip, indicating a strategic buying approach.
Market Adjusts to DeepSeek's Impact
The overall market remains volatile as investors evaluate the impact of DeepSeek's launch. The divergent trends for Bitcoin, Ethereum, and XRP reveal selectivity among investors adapting to new conditions.
DeepSeek's launch has reshaped the market, prompting significant changes that require investor adaptation. While major cryptocurrencies faced pressure, XRP demonstrated an ability to withstand market instability.
