DeepSeek Shakes All Markets

China continues to compete with the U.S. in bitcoin holdings and A.I. innovation

Author

Litquidity Capital
January 28, 2025

Good Morning,

The U.S. stock market saw liquidations north of $1 Trillon yesterday due to DeepSeek’s competitive AI offering. Crypto didn’t take too bad of a tumble though 😅

Here's a quick preview of today’s content: Nvidia sets record with single largest market drop, Coinbase is reassessing token listing process, Bitcoin enthusiasts fight against Ripple supporters about strategic reserves, Phemex breach totals $85M, and much more.

Let’s dive in.

Market Snapshot

As of 1/27/2025. Data per CoinMarketCap.

  • Crypto markets quickly rebound after the $1T U.S. market liquidity scare yesterday, with crypto down ~4% across the board

    • Bitcoin holds near $102k

    • Ethereum still barely above $3.1k

  • Flockerz ($FLOCK) find itself atop the 24 hour leaders following its $13.2M pre-sale, up 55%

Market Predictions

  • Traders on Kalshi are currently predicting if China will overtakes USA’s economy by 2030?

  • You can trade this market by checking out Kalshi

  • Get a $20 bonus when you deposit $100 or more with code “LIT” on signup

Headline Roundup
The major headlines driving crypto markets

  • Nvidia’s intraday -17% drop erases over $600B in market value, the largest single-day market cap decline in history (CS)

  • With all this mayhem about DeepSeek, Ben Thompson writes a great breakdown of the implication it possibly could have for all of big tech that you can read here 

  • Crypto detective ZachXBT found himself in the hot seat this week after he was accused of orchestrating a rug pull (CT)

  • KuCoin co-founders step down in its $300M US settlement over unlicensed money-transmitting operations (DC) 

  • Crypto ETPs recorded $1.9B in inflows last week following Trump’s crypto executive order (CT) 

  • MicroStrategy acquires an additional $1.1B of Bitcoin and launches a $250M perpetual strike preferred stock offering (BBG)

  • Bitcoin enthusiasts slam Ripple for pushing a strategic multi-asset reserve (TD) 

  • Coinbase’s Brian Armstrong calls for 11% Bitcoin reserve allocation (TD) 

  • Ripple Labs secures money transmitter licenses in Texas and New York (CT) 

  • Poland’s Bitcoin ATM network grows to 219, surpassing El Salvador’s (CT) 

  • Coinbase will reassess coin listings to address the growing token influx (DH)

  • Solana widens its lead over Ethereum in transaction fees (TD) 

  • ‘Bitcoin Jesus’ Roger Ver is seeking a presidential pardon from Trump (DC) 

  • Crypto exchanges Bitpanda, OKX, and Crypto.com secure EU MiCA licenses (CD) 

  • OpenSea offers Gemesis NFT holders access to the beta of second generation platform OS2 (TD) 

  • Vine Coin surges +60% after Binance futures listing (CD)

Launches

  • Ozak AI’s token presale surpasses $500K (CD)

  • Decentralized prediction market MYRIAD launches on Abstract as mainnet goes live (DC) 

  • Web3 gaming platform Funtico launches TICO token to support gaming sector (DC) 

  • Ethereum L2 chain Abstract chain goes live on the mainnet (TB) 

Venture Capital

  • Blockchain identity platform Humanity Protocol secures $20M at a $1.1B valuation (TV) 

  • Blockchain interoperability protocol Analog raises $5M at a $300M token valuation (TB)

Cybersecurity

  • Crypto exchange Phemex suffers an $85M loss in a major security breach (BC)

Extra Reads

Chart of the Day

Real World Asset tokenization jumped from a $16B —> $60B market this week 👀

Meme Dump

Pls send us crypto memes to be featured in the newsletter 🤝

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