Standard Chartered analysts suggest that China's DeepSeek AI could positively impact Bitcoin despite its current decline of over 1.6%. While there are mixed opinions on the Federal Reserve's upcoming rate decisions, Geoffrey Kendrick from the bank argues that DeepSeek, which lowers inflation, is beneficial for risk assets like Bitcoin. Kendrick anticipates that Bitcoin will rebound in the following days, potentially returning above $105,000, provided the Fed's stance is neutral. This optimistic view is shared within the crypto community, as various institutions are increasingly engaging with Bitcoin, indicated by significant inflows into Bitcoin ETFs. Kendrick notes that only 1% of Bitcoin ETF assets are held by pension funds, highlighting potential growth in this sector and suggesting that 2025 could see greater institutional interest in Bitcoin. Despite short-term fluctuations like those surrounding DeepSeek, the long-term outlook remains bullish for Bitcoin due to increasing accumulation from various entities.

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