Bitcoin’s Selloff Sparked by DeepSeek Could Be a Strategic Buy Opportunity, Analysts Believe

Bitcoin (BTC) saw a sharp decline overnight, following a broader selloff in tech stocks driven by concerns over DeepSeek’s breakthrough AI model. Bitcoin dropped from a high of $105,000 on Sunday to below $98,000, before recovering to around $100,000. While many analysts feared this could be the start of a deeper correction, Geoff Kendrick, global head of digital asset research at Standard Chartered, called it a “buy the dip” opportunity.

A week earlier, Kendrick had warned that a 10%-20% correction could be on the horizon, due to overinflated expectations of President Donald Trump’s upcoming crypto executive orders and strategic reserve. However, Kendrick believes that the recent selloff has already absorbed much of the market’s previous overoptimism.

While some volatility may persist, particularly with major tech companies reporting earnings this week and the Federal Reserve meeting results looming, Kendrick noted that the rapid decline in U.S. Treasury yields, with the 10-year note now approaching 4.5%, suggests that the worst of the downturn may be over.

Despite limited short-term catalysts from the Trump administration’s actions on digital assets, Kendrick anticipates that institutional flows will strengthen in the coming weeks, which could help fuel further growth in the sector.

Supporting this view, analysts from LondonCryptoClub characterized the recent selloff as an overreaction to negative headlines, particularly surrounding DeepSeek. They argued that market flushes like these typically signal local lows during a bullish trend.

“While broad derisking can be messy and indiscriminate, we’re still in a ‘buy the dip’ environment,” they said.

As of the latest data, bitcoin was trading down around 4% at $99,800, while the Nasdaq 100 index dropped 3%, led by a 15% decline in Nvidia (NVDA).