Key Points
- DeepSeek’s launch triggered a sharp decline in the cryptocurrency market, causing $534 million in ETP outflows.
- Despite the market downturn, XRP showed resilience, attracting $2.1 million in inflows.
The cryptocurrency market experienced significant volatility following the launch of DeepSeek, leading to a sharp decline across various sectors.
Crypto mining stocks were impacted, and the broader market experienced intense fluctuations, resulting in a widespread downturn.
DeepSeek’s Effect on BTC and ETH ETF
Even spot Bitcoin (BTC) and Ethereum (ETH) ETFs, which previously saw substantial inflows, were affected. The turbulence caused by DeepSeek led to a reversal, with spot BTC ETFs witnessing significant outflows, and spot ETH ETFs also recording losses.
The ETP market experienced a similar effect, leading to investor panic and prompting further outflows from Bitcoin and Ethereum.
XRP’s Resilience Amid Market Downturn
Despite the dramatic single-day sell-off in the crypto market, XRP defied the broader downturn. After an initial dip, XRP quickly rebounded, attracting inflows on the same day. On-chain activity mirrored this trend, with high-net-worth wallets accumulating XRP during the market slump.
The crypto mining sector faced losses for the second consecutive day due to the turmoil caused by DeepSeek’s launch. The broader crypto market also saw a decline, with the global market cap dropping slightly.
In contrast, major U.S. tech stocks, including Nvidia, Apple, and Amazon, made a strong recovery, reversing some of the previous day’s losses.