- Bitcoin maintains position above $100,000 despite volatility, currently trading at $101,880.
- Chinese AI startup DeepSeek’s new language model triggered market turbulence, briefly pushing BTC below $99,000.
- ETF flows slowed this week with $458 million in outflows, following last week’s $1.6 billion inflow.
- Tether announced USDT integration with Bitcoin’s base layer and Lightning Network.
- Trump Media launches Truth.Fi, planning potential cryptocurrency investments through ETFs.
Bitcoin experienced significant price swings this week as market sentiment fluctuated between technological developments, regulatory signals, and political announcements. The leading cryptocurrency maintained its position above the crucial $100,000 level despite experiencing a 3% weekly decline.
The turbulence began when DeepSeek, a Chinese Artificial Intelligence company, unveiled its new open-source large language model, triggering a selloff in both tech and crypto markets. The price bottomed at $98,380 on Monday as investors reassessed their positions in AI-related assets.
Market sentiment improved after Federal Reserve Chair Jerome Powell‘s comments suggesting potential interest rate cuts and expressing openness to banks handling crypto services. However, the announcement of President Trump’s tariff implementation against Canada, Mexico, and China created new headwinds, pushing Bitcoin down from nearly $106,000 to below $102,000.
The institutional landscape showed mixed signals as Bitcoin ETF flows moderated significantly. After last week’s robust $1.6 billion inflow, Monday saw $458 million in outflows, though the vehicles recovered somewhat by Thursday.
In a significant development for Bitcoin’s infrastructure, Tether announced plans to integrate USDT stablecoins with Bitcoin’s base layer and Lightning Network. Elizabeth Stark, CEO of Lightning Labs, emphasized that this integration would enable “millions of people to use the most open, secure blockchain to send dollars globally.”
The political dimension intensified as Ripple faced criticism from Bitcoin maximalists over its perceived influence on the administration’s crypto policies. CEO Brad Garlinghouse defended his position, advocating for a diverse government digital asset reserve rather than a single-token approach.
Meanwhile, Trump Media and Technology Group announced its new fintech venture, Truth.Fi, indicating plans to potentially invest in cryptocurrencies through ETF vehicles managed by Charles Schwab, adding another layer to the complex relationship between the administration and digital assets.
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