1. Why Is the Crypto Market Crashing?
The crypto market has been experiencing a sharp decline due to various factors, including:
- Chinese AI startup DeepSeek disrupting the market.
- Macroeconomic concerns.
- Investor panic ahead of the FOMC meeting.
DeepSeek Upsets the AI Coin Market
- AI Coins Crash: Tokens such as Near Protocol (NEAR), Internet Computer (ICP), Render (RENDER), and Filecoin (FIL) have plummeted by 8-10%, dragging the AI coin market cap to $42 billion (-10.05%).
- Cause: DeepSeek’s low-cost AI models are reshaping the AI landscape, creating panic among investors as it challenges Silicon Valley dominance.
Bitcoin and Altcoins See Significant Drops
- Bitcoin: Dropped 5.05% to $99,279.69, with market sentiment turning bearish.
- Altcoins: Major coins like Ethereum, XRP, Solana, Cardano, and Dogecoin have declined by 5-10%, driven by FOMC meeting expectations and its potential influence on interest rates.
Arthur Hayes Predicts Bitcoin’s Short-Term Plunge
- The BitMEX CEO forecasts that Bitcoin will dip to $70,000 during what he describes as a “mini financial crisis.”
- Despite the dip, Hayes is bullish on a mega rally after this short-term correction.
- He notes that DeepSeek AI could push global investors to diversify away from US-dominated assets and into international markets.
2. Abstract Mainnet Launches Tomorrow
Abstract Mainnet is set to go live on 28 January 2025, marking the “Year of Abstraction.” This launch is expected to bring a new dimension to blockchain technology.
Key Highlights:
- Modular Architecture: Enables customizability for a variety of blockchain use cases.
- Eco-Friendly Consensus: Offers interoperability across networks while maintaining sustainability.
- Industry Disruption: Could transform sectors like DeFi, gaming, and supply chain management.
Abstract Mainnet holds the potential to redefine the crypto landscape in 2025 by simplifying blockchain adoption and driving innovation.
3. TOSHI Coin: The Rising Star
The meme-inspired TOSHI Coin continues its meteoric rise, fueled by its connection to Coinbase CEO Brian Armstrong’s cat and a recent Coinbase listing.
Performance:
- Recently hit an all-time high but now needs to establish a strong support level at $0.00100 to sustain its growth trajectory.
Outlook:
- As its community and media attention grow, TOSHI has the potential to maintain its upward momentum, provided investor confidence remains strong.
Final Thoughts
The crypto market is experiencing turbulence, with major events shaping its future:
- FOMC meeting.
- Abstract Mainnet launch.
- DeepSeek’s AI disruption.
This period of uncertainty presents both challenges and opportunities, especially in sectors like the AI coin market and emerging blockchain projects.
Stay cautious but watchful for market trends as 2025 unfolds, promising massive changes in the crypto world.
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