Crypto at a Crossroads: Will Bitcoin and Ethereum Recover or Dive Deeper?

Market Downturn Continues as Bitcoin?, Ethereum?, and Solana Struggle

The cryptocurrency? market is once again in decline following Monday’s crash, which continues to affect both traditional and risk assets. Bitcoin? (BTC) has been unable to build momentum, briefly dropping to $100,265 before recovering to its current level of $101,600. Over the past 24 hours, BTC has declined nearly 1% and is down approximately 4% over the past week.

Other major cryptocurrencies are also facing downturns. Ethereum? (ETH) has fallen below $3,200 and is currently trading around $3,110, marking a 2.5% drop. Solana (SOL) has declined nearly 3% in the past 24 hours and 9% over the past week, struggling to hold above $230. Meanwhile, Ripple (XRP) has managed to remain slightly positive despite the broader market downturn. Other notable cryptocurrencies, including Cardano (ADA), Toncoin (TON), Hedera (HBAR), Stellar (XLM), Polkadot (DOT), Litecoin (LTC), and AI-related tokens, have all suffered significant losses.

French Authorities Investigate Binance for Fraud

French investigators have launched a probe into Binance, the world’s largest cryptocurrency? exchange?, over allegations of money laundering, tax fraud, and other financial misconduct. According to the Paris Prosecutor’s Office’s economic and financial crime division, the investigation spans offenses committed between 2019 and 2024 within France and the broader European Union.

Binance has denied all allegations and vowed to contest any charges. This latest development follows the legal troubles of Binance’s former CEO, Changpeng Zhao, who recently served a four-month prison sentence for violating U.S. anti-money laundering laws. Binance also agreed to pay $4.3 billion in penalties after U.S. authorities accused it of failing to report over 100,000 suspicious transactions and facilitating illicit activities.

Despite these legal challenges, Binance insists it has improved its compliance with anti-money laundering (AML?) regulations and enhanced its know-your-customer (KYC?) policies to prevent illicit financial activities.

Coinbase Expands to Argentina Amid Rising Crypto Adoption

Coinbase has officially launched operations in Argentina after securing Virtual Asset Service Provider (VASP) approval from the country’s National Securities Commission. The move allows Coinbase to serve Argentina’s growing crypto community, with over 5 million people reportedly using digital assets daily.

Matias Alberti, a fintech expert with experience at Beunbit and Clara, will oversee the platform’s operations in the region. Fabio Plein, Coinbase’s Director for the Americas, expressed confidence in Alberti’s leadership, emphasizing the company’s commitment to empowering Argentinians through cryptocurrency? adoption.

A recent survey by Coinbase revealed strong enthusiasm for crypto in Argentina, with 87% of respondents believing it can improve financial independence and 79% open to receiving their salaries in crypto. Coinbase’s expansion is seen as a significant step toward integrating digital assets into Argentina’s financial system.

DeepSeek Disrupts Markets, Wiping Out $1 Trillion from U.S. Tech Stocks

The launch of DeepSeek’s R1 model has sent shockwaves through the tech and crypto markets. The Chinese AI company’s groundbreaking model, developed for just $5.6 million, has outperformed expectations, rivaling OpenAI’s o1-mini while requiring far fewer resources. The unexpected innovation wiped out over $1 trillion from U.S. markets, with Nvidia suffering the largest single-day loss in history, shedding $600 billion in market value. Google’s parent company, Alphabet, lost $100 billion, while Microsoft saw a $7 billion decline.

The impact of DeepSeek’s R1 extends to GPU-reliant crypto mining? companies and AI-centric cryptocurrencies. Riot Platforms (RIOT) dropped over 15%, while Cipher Mining? (CIFR) plummeted by 25%. AI tokens also faced significant selloffs, with Render (RENDER) down 11%, The Graph (GRT) dropping 15%, and Artificial Superintelligence Alliance (FET) falling 14%.

Despite this immediate market turbulence, some analysts view DeepSeek’s emergence as a long-term positive for AI-focused crypto projects. The model’s open-source nature and cost efficiency could make blockchain?-based AI applications more sustainable in the future.

Bitcoin? (BTC) Price Analysis

Bitcoin? is attempting a recovery, gaining just over 1% in the past 24 hours. However, the resistance at $103,000 remains strong. The market is closely watching the first Federal Open Market Committee (FOMC) meeting of 2025, with analysts expecting the Federal Reserve to maintain its benchmark rate at 4.25%-4.50%.

If the Fed takes a hawkish stance, Bitcoin? could experience increased volatility. Key support is at $99,330, while resistance remains at $102,200. BTC is currently consolidating around $102,000, with technical indicators suggesting caution among traders.

Ethereum? (ETH) Price Analysis

Ethereum? remains under pressure, struggling below the 20-day SMA. After briefly reclaiming $3,339, ETH faced rejection and dropped to $3,110. Technical indicators suggest bearish sentiment, with the RSI below neutral and the MACD signaling further downside. If ETH fails to hold above $3,000, a decline to $2,800 could be possible.

Solana (SOL) Price Analysis

Solana has faced a rapid decline, dropping below $230. The coin? has struggled to maintain momentum after hitting $295 last week. If SOL falls below the 20-day SMA and $200 support, further declines may follow. Although the RSI is slightly above neutral, the MACD’s bearish crossover signals potential continued losses.

Dogwifhat (WIF) Price Analysis

Dogwifhat (WIF) has been on a steady decline, falling to $1.05 after testing support at $1. Despite this, the meme coin? has gained nearly 13% in the current session as buyers attempt to reclaim lost ground. If WIF can break above its 20-day SMA, it may regain momentum; otherwise, further downside is likely.

Internet Computer (ICP) Price Analysis

Internet Computer (ICP) has suffered significant losses amid AI-token? selloffs, declining nearly 10% over the past week. The token? has slipped below key moving averages, with the MACD indicating continued bearish pressure. If sellers push ICP below $8, it may test lower support levels in the coming days.