Analysts Call Bitcoin’s DeepSeek-Driven Dip a Buying Opportunity for Investors

Bitcoin (BTC) faced a sharp decline overnight, mirroring a broader market selloff fueled by the fallout from DeepSeek’s advanced artificial intelligence model and a tech sector slump. The cryptocurrency dropped from a peak of $105,000 on Sunday to below $98,000 before rebounding to just under $100,000. This price action triggered concerns among traders about a more severe pullback, but some analysts, including Geoff Kendrick from Standard Chartered, are suggesting that this may present a buying opportunity.

Kendrick had previously warned about the potential for a 10%-20% market correction, driven by overly optimistic expectations surrounding President Donald Trump’s crypto-related executive orders and strategic reserve plans. In his analysis on Monday, Kendrick noted that much of this correction may have already occurred with the recent selloff.

While the market may experience some additional volatility in the short term—due to earnings reports from major U.S. tech firms and the Federal Reserve’s meeting on Wednesday—Kendrick pointed to a significant decline in U.S. Treasury yields as a positive sign. With the 10-year note yield nearing 4.5%, he believes the bulk of the selling pressure may already be behind us.

Although the crypto sector didn’t see immediate price movement from Trump’s latest actions, Kendrick emphasized that over time, the positive impacts of increased institutional flows would likely provide support for the space.

LondonCryptoClub analysts also believe the current dip is a classic overreaction to headlines, especially around DeepSeek. They noted that such selloffs, though sharp, are often seen at local market lows within broader bullish trends.

“This is still a ‘buy the dip’ market,” the analysts said, encouraging traders to view the pullback as an opportunity rather than a sign of deeper losses.

At press time, Bitcoin was trading 4% lower at $99,800, while the Nasdaq 100 had fallen 3%, with Nvidia (NVDA) seeing a sharp 15% drop.