Noor Trends News, Technical Analysis, Educational Tools and Recommendations
Bitcoin regained some ground on Tuesday, recovering from recent losses as bargain hunters took advantage of the cryptocurrency’s dip below the $100,000 mark. Despite the rebound, traders remained cautious amid concerns over a potential market rout spurred by artificial intelligence developments and political uncertainty surrounding U.S. President Donald Trump’s stance on cryptocurrency regulation.
At 00:56 ET (05:56 GMT), Bitcoin had risen 2.7% to $103,036.4, after briefly falling below the key psychological level of $100,000 on Monday. The bounce was driven by investors seeking opportunities in a volatile market, though broader market jitters continue to weigh on sentiment.
DeepSeek Fears and AI Worries Cast Shadow on Markets
Cryptocurrency markets were notably impacted by a steep selloff in Wall Street, driven primarily by fears surrounding the artificial intelligence sector. NVIDIA (NASDAQ:NVDA), a prominent player in AI hardware, took a hit after the launch of DeepSeek R1, an AI model from the Chinese startup DeepSeek. The model demonstrated similar capabilities to industry leaders like ChatGPT, but with significantly lower costs and older hardware, raising questions about the sustainability of AI-driven investments.
This AI-induced risk-off sentiment rippled through global markets, including cryptocurrencies, causing a temporary dip in digital asset prices.
Trump’s Crypto Moves Fuel Market Uncertainty
Adding to the uncertainty, the cryptocurrency sector remained on edge following U.S. President Trump’s mixed signals regarding crypto regulation. Last week, Trump signed an executive order aimed at establishing a regulatory framework for digital assets. While the move was seen as a step toward clearer guidelines, it fell short of providing concrete details or addressing key issues such as Bitcoin’s role in the broader regulatory landscape.
Market participants were particularly concerned by Trump’s omission of Bitcoin in his order. Despite calling for a strategic digital asset reserve, Trump did not mention Bitcoin, fueling concerns that his policies may not fully support the leading cryptocurrency.
Meanwhile, Trump’s stance on tariffs also weighed on risk appetite, with reports indicating that Treasury Secretary Scott Bessent had suggested a gradual rise in universal tariffs, starting at 2.5%, with the potential for increases. However, Trump dismissed this notion, signaling that he would push for much higher tariffs, which added to market unease.
$TRUMP Memecoin Finds a Bottom Amid Volatility
Trump’s memecoin, $TRUMP, also made headlines as it appeared to find a bottom after a dramatic 60% loss from its post-launch highs. The token rebounded by 12% to $29.898, recovering some of the ground lost after reaching a record low of $24.736 earlier in the week.
Although the token has experienced a turbulent ride since its launch, it continues to attract attention from speculators. The volatility of $TRUMP is seen as a reflection of broader market uncertainty, with crypto traders closely watching how Trump’s political moves may influence the sector.
Altcoins and Broader Crypto Market Follow Bitcoin’s Lead
Other major cryptocurrencies also followed Bitcoin’s upward trajectory. Ethereum (ETH) rose 2.2% to $3,209.99, while XRP gained 5.7%, reaching $3.1040. Several other altcoins showed positive movement, with Cardano, Solana, and Polygon gaining between 0.2% and 5%.
Meme coins also saw a rebound, with Dogecoin rising 4.3%, showing that speculative interest in smaller tokens remains strong, despite broader market concerns.
