XRP and TRUMP Soar 12%, Driving Crypto Rebound Ahead of FOMC Gathering.

Bitcoin Climbs 4% to $103,000, Easing Monday’s Losses; XRP Surges 12% Amid Crypto Rebound

Bitcoin (BTC) gained 4% over the past 24 hours, reaching around $103,000 in the early hours of Tuesday in Europe, helping to offset some of Monday’s significant losses. The price increase followed a turbulent day on Monday, where breakthroughs from China’s DeepSeek AI led to sharp declines in U.S. stock indexes due to concerns over the valuation of AI investments.

XRP led the recovery among major cryptocurrencies, surging 12%, while other tokens like Cardano (ADA), Binance Coin (BNB), Solana (SOL), and Dogecoin (DOGE) saw increases of up to 9%. Ethereum (ETH) rose 4.5%, and the overall cryptocurrency market capitalization jumped by 3%.

The price recovery helped Bitcoin ease some of the losses sustained on Monday, when over $1 billion in futures positions were liquidated and the CoinDesk 20 (CD20) index fell by 8.5% at its lowest. Historically, such liquidation events can signal market corrections, presenting potential buying opportunities, as noted by CoinDesk.

TRUMP tokens led the midcap rally, jumping 12%, with tokens below a $5 billion market cap showing strong gains. The positive sentiment was further fueled by Tuttle Capital’s filing for the first-ever 2x leveraged ETFs in the U.S., which would offer 200% returns based on the daily performance of major cryptocurrencies, including TRUMP, MELANIA, and BONK.

The sell-off on Monday was primarily driven by news from China’s DeepSeek, whose AI model was reported to outperform OpenAI’s with a significantly lower budget and fewer GPUs. DeepSeek’s model, developed on just $6 million, demonstrated a competitive edge over OpenAI, which recently secured $6.6 billion in funding and boasts a $157 billion valuation.

However, some traders suggest that DeepSeek’s breakthrough may have been one of several factors affecting the crypto market. Nick Ruck, director at LVRG Research, pointed out that while initial concerns about DeepSeek created some market volatility, they also offered a buying opportunity for the crypto sector. “DeepSeek’s model can be integrated into crypto projects to enhance innovation and efficiency,” Ruck explained.

Looking ahead, traders are focused on upcoming macroeconomic data, including the Federal Open Market Committee (FOMC) meeting, scheduled for January 28–29, and earnings reports from major companies such as Apple, Meta, and ASML. Ruck expressed optimism for Bitcoin in the long term, noting that policies in the U.S. and abroad are increasingly favorable for the crypto industry.

The FOMC meeting is expected to leave rates unchanged, which historically impacts Bitcoin’s price, as investors often adjust their portfolios in response to such decisions.

Additionally, QCP Capital in Singapore offered a lighter perspective in their Tuesday market update, using astrology to highlight the Year of the Snake. The firm stated that the market’s unpredictable nature aligns with the Snake’s symbolism of resilience and adaptability—traits that will be key in navigating 2025’s challenges and opportunities.

Bitcoin proved to be highly profitable for bulls in 2024, the Year of the Dragon, and market analysts are hopeful that the unpredictable nature of the coming year could lead to new highs, based on astrological charts involving the “Rough Green” and “Brown Tree” snakes.