Risk assets slump, including Bitcoin, as China’s new AI startup threatens U.S. leadership, leaving analysts to speculate on Trump’s next aggressive move.
Bitcoin’s (BTC) price under pressure again, dipping below $100k, as China‘s latest AI powerhouse, Deepseek, shakes up global markets. With fears of a challenge to U.S. dominance brewing, all eyes are on Trump and his next big move.
According to QCP Capital, traders are keeping a close eye on this latest tech advancement, which could threaten U.S. dominance in AI. In a Telegram post on Jan. 27, the analyst wrote that Deepseek’s cost efficiency and open-source approach pose a “potential threat to U.S. equity markets by disrupting U.S. AI dominance with their cost efficiency and groundbreaking open-source technology.”
There’s also been chatter about a Strategic Bitcoin Reserve to counter these risks. However, as QCP noted the idea of a “national digital asset stockpile” has been circulating, though no concrete action has been taken yet. Without it, the analysts “do not foresee a break higher without confirmation on a Strategic Bitcoin Reserve.”
“Risk reversals remain skewed in favor of Calls only from March onwards, indicating that the market is not expecting much until quarter-end. However with China’s Deepseek threatening the US market, we wouldn’t be surprised if Trump attempts to step in and play hero.”
QCP Capital
Meanwhile, the options market has seen heightened activity, with traders hedging ahead of the FOMC meeting on Thursday, Jan. 30.
For now, QCP thinks Bitcoin might hold steady in its current range. But if Trump decides to go hard against China — whether with tariffs, restrictions, or something more extreme — BTC should “remain relatively resilient as it continues to trade in this familiar range.”
