Is AI Tech Rout Amid DeepSeek Saga A Win For IBIT & Trump’s Bitcoin Push?

A recent report indicates that the current AI tech rout and rising DeepSeek popularity could aid BlackRock's IBIT and Donald Trump's Bitcoin push.
By Coingape Staff
Crypto Market Crash Jitters Re-Emerges As Alibaba Claims Its AI Tops DeepSeek

Highlights

  • The rise of DeepSeek has triggered an opportunity for Donald Trump to push for Bitcoin.
  • IBIT is expected to gain from the decline in BTC values.
  • Bitcoin and broader crypto market crashed today amid DeepSeek's rising popularity.

DeepSeek is creating waves across the segment of Artificial Intelligence (AI), and is most interestingly raising questions about opportunities that it brings to the world. At the top is a way in which DeepSeek could help in Donald Trump’s Bitcoin push while aiding BlackRock’s IBIT. Besides, it has also sparked a wider selloff in the global market, challenging US dominance in the tech sector.

Advertisement
Advertisement

Is DeepSeek an Opportunity?

DeepSeek, China’s open-source AI research lab, is being called a ‘Sputnik moment’ for the US. Notably, the broader financial market recorded a massive selloff today as China’s AI startup DeepSeek has made headlines with its low-cost efficacy.

However, MacroScope said that the current tech market rout could benefit the Trump Administration to further push its Bitcoin strategy, thereby, making it a national priority. Bitcoin advocate James Lavish has backed this sentiment by saying that anyone who is selling Bitcoin (BTC) has no idea about what they own right now.

Notably, the majority of the crypto community has assumed that the introduction of DeepSeek puts digital assets like Bitcoin at risk of being sold off. Such anticipation has led to the crypto market crash as US stock futures tied to the S&P 500 have also slipped 1.30%. Nevertheless, many see this as an opportunity to accumulate Bitcoin since it is at a low value in the market.

Advertisement
Advertisement

How This AI Tech Rout Can Aid Trump’s Bitcoin Push?

US President Donald Trump has signed a key executive order to develop the National Digital Asset Stockpile while also reaffirming at Devos that he is going to make the US a crypto capital. The AI tech rout amid the rise of DeepSeek can be leveraged to continue accumulating BTC at a lower value. It will also help strengthen Donald Trump’s commitment to establishing a Strategic Bitcoin Reserve.

This is indeed a boon as the Federal Reserve has hinted at keeping the rate unchanged after it concludes a 2-day meeting on Wednesday. Bitcoin price plummeting because of the AI rout supports the sentiment to invest in riskier assets. More investors adding Bitcoin to their portfolios only goes on to give it more credibility and adoption across the US and other regions.

Advertisement
Advertisement

How Can It Be a Win For IBIT?

BlackRock’s IBIT is leading the inflows for Spot Bitcoin ETFs with a historical cumulative total of $39.72 billion as of Jan 27. Chances are, fund allocation to Spot Bitcoin ETF will be led by IBIT as the DeepSeek rise picks a momentum and crypto investors look to allocate their funds to a safer option.

That said, Ali Martinez, also known as Ali Charts, has sided with OpenAI. He has said that he did give DeepSeek a try but ChatGPT was still his top choice. This has signaled to the community that any downside that DeepSeek or the AI tech rout has created is temporary with scope for cryptocurrencies to rebound eventually. Besides, MicroStrategy acquired BTC worth $1.1 billion, and this is further strengthening the confidence of the crypto community.

Advertisement
Coingape Staff
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.