The release of the novel Chinese artificial intelligence (AI) DeepSeek model – along with making many of the underlying processes open source – unleashed a tempest upon the American markets and had a strong spillover into the cryptocurrency market.
Bitcoin (BTC), as the prime representative of digital assets, itself experienced a rapid and sharp drop during the weekend and on Monday, falling as low as $98,000 at one point on January 27.
Still, the effect on cryptocurrencies proved short-lived – much like the impact on more closely related assets such as Nvidia (NASDAQ: NVDA) stock – and BTC, by press time on January 29, recovered to $102,646.
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Nonetheless, the downturn and the overall state of the market do leave room for concern about what might happen to digital assets in 2025, Finbold consulted DeepSeek itself, available on Finbold’s AI price prediction tool, on where Bitcoin might find itself on December 31, 2025.
DeepSeek sets Bitcoin price target for December 31, 2025
With both its online functionality and the DeepThink (R1) enabled, DeepSeek quickly identified the main factors driving Bitcoin’s performance: the 2024 halving, institutional adoption and exchange-traded funds (ETFs), macroeconomic tailwinds, the political and regulatory climate, and technical and cyclical trends.
Under the circumstances – and with most of the factors, from the still-high inflation to Trump’s pro-cryptocurrency approach – being bullish, and with historical halvings indicating a multi-year bull market, it may come as no surprise that the AI forecasted a continued rally.
Indeed, though not as optimistic as some – the prominent cryptocurrency lobbyist Periannce Boring being the first to come to mind due to the $800,000 2025 price target – DeepSeek, nonetheless, forecasted a major 104.59% upside this year and a December 31 price of $210,000.
Historical cycles back DeepSeek’s forecast
The analysis appears largely in line both with history and with recent expert estimates. Bitcoin has, so far, proven its ability to remain above the critical psychological level of $100,000 with relative stability, albeit with pervasive volatility.
Furthermore, on-chain analysts, such as Ali Martinez on X, recently pointed out that historical cycles indicate that BTC is, with its recent headwinds, merely gathering its strength for a breakout that will lead it to cycle highs in September – cycle highs the very same analyst previously set at $220,000.
Featured image via Shutterstock
