Cryptocurrency markets experienced volatility due to uncertain investor sentiment before the FOMC meeting. Bitcoin (BTC) 
$74,999 and major altcoins notably declined in value. American stocks also faced selling pressure alongside the rise of the Chinese AI company DeepSeek.
Significant Declines in Bitcoin and Altcoins
Bitcoin (BTC) dropped over 3% in the last 24 hours to $101,239. Ethereum (ETH) 
$2,298 fell by 5%, while XRP and Solana 
$85 (SOL) each lost 10% of their value. These declines mirrored the overall market trend, reducing the total value of the cryptocurrency market by 3% to $3.47 trillion.
Investor Sentiment and Liquidations
The total trading volume in the global cryptocurrency market increased by 21% yesterday to reach $106.54 billion. Bitcoin experienced liquidations exceeding $57 million, and Ethereum saw approximately $30 million in liquidations. Ripple 
$1’s XRP dropped below the $3 level, stirring concerns among investors.
Impact of AI Company DeepSeek
The rise of the Chinese open-source AI venture DeepSeek has exerted pressure on major U.S. tech companies. DeepSeek surpassed leading American AI firms like OpenAI and Meta to become number one on the App Store. This development also led to declines in Nasdaq 100 futures.
Despite the fluctuations in the cryptocurrency market, some analysts maintain an optimistic outlook. Gabor Gurbacs, digital asset strategist at VanEck, criticized DeepSeek’s rise, advocating for increased U.S. investment in Bitcoin.
Meme cryptocurrencies also followed the general downward trend, with Dogecoin 
$0.094398 (DOGE) falling 8%, Shiba Inu (SHIB) 7%, and PEPE and TRUMP dropping 13%. This scenario prompted investors to behave cautiously amid market uncertainty.
Recent turbulence in cryptocurrency markets has led investors to act more cautiously ahead of the FOMC meeting. The uncertainty in the market and rising liquidations indicate that cryptocurrencies may exhibit increased volatility in the short term.
Significant price drops and developments in the AI sector highlight the broader economic and technological factors affecting cryptocurrency markets. It is crucial for investors to consider these dynamics when determining their strategies.
