Bitcoin Holds Above $100K Despite DeepSeek Concerns, Trump’s Crypto Policy in Focus

Bitcoin remained resilient on Tuesday after briefly dipping below the key $100,000 mark, recovering 0.5% to trade at $101,927.2 by 3:46 p.m. ET. The rebound came as traders bought the dip, though concerns over China’s DeepSeek R1 AI model and broader risk sentiment continued to pressure the market.

Wall Street’s tech rout weighed on crypto, with NVIDIA (NASDAQ: NVDA) leading losses amid fears of excessive AI spending. DeepSeek R1, reportedly matching ChatGPT’s capabilities with older hardware and a lower budget, fueled jitters. Risk-off sentiment spilled into crypto, dragging down major altcoins.

Investors also eyed U.S. President Donald Trump’s regulatory stance. While his recent executive order hinted at a digital asset framework, it lacked specific mention of Bitcoin, dampening enthusiasm. Trump's tariff threats added further uncertainty to risk assets, with reports suggesting Treasury Secretary Scott Bessent prefers a phased approach, though Trump dismissed this, advocating for more aggressive tariffs.

Meanwhile, Arizona lawmakers advanced a bill proposing public fund investments in Bitcoin. However, its approval remains uncertain, given past legislative setbacks on Bitcoin adoption.

Crypto investment inflows stayed strong, with Bitcoin and Ethereum ETFs attracting nearly $2 billion last week, according to CoinShares. So far in 2025, total inflows have reached $4.8 billion, driven by optimism surrounding emerging technologies and Trump’s administration.

Among altcoins, Ethereum slipped 1.2% to $3,109.31, while XRP surged 6% to $3.09. The Trump-linked $TRUMP token recovered 1.5% to $27.71 but remains down 60% from its peak. Cardano, Solana, and Polygon saw losses, while Dogecoin dropped 3%.

Despite ongoing market turbulence, Bitcoin’s resilience above $100K signals continued investor confidence in the leading cryptocurrency.