DeepSeek AI's Impact on Bitcoin and Market Dynamics

According to PANews, Standard Chartered analyst Geoffrey Kendrick suggests that the emergence of DeepSeek AI could benefit risk assets like Bitcoin. The low-cost nature of DeepSeek AI may help reduce inflation, potentially favoring non-AI-linked assets such as Bitcoin. While most analysts anticipate that the Federal Reserve will maintain current interest rates, some speculate about a possible "slightly dovish surprise," which might mitigate DeepSeek's short-term impact on Bitcoin prices. Kendrick forecasts a potential rebound for Bitcoin in the coming days, contingent on Federal Reserve Chair Jerome Powell's policy stance. He believes that if the Federal Reserve maintains a neutral position, Bitcoin's price could rise above $105,000. In the long term, the continuous inflow of institutional funds is seen as a primary driver of Bitcoin's price. Lou Kerner, founder of CryptoMondays, notes that while short-term "risk events" may affect prices, the cumulative demand from individuals, corporations, and traditional financial institutions worldwide will propel Bitcoin higher. Data indicates that as of September last year, only 1% of Bitcoin ETF value was held by pension funds, suggesting significant growth potential. Kendrick anticipates that by 2025, long-term investment institutions will enter the Bitcoin market on a large scale, driving fund inflows beyond last year's levels. He also mentions that geopolitical or economic crises could further enhance Bitcoin's appeal as a store of value.