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Crypto inflows dropped sharply to $527 million last week, a significant decline from the previous weeks, largely driven by the DeepSeek AI hype.
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Despite the downturn, Bitcoin demonstrated resilience with $486 million in inflows, attracting investor interest amid overall market volatility.
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“Digital asset investment products saw inflows totaling $527 million last week… influenced by broader market concerns,” noted James Butterfill from CoinShares.
Crypto inflows plummeted to $527 million amid DeepSeek hype, while Bitcoin attracted $486 million in a resilient market response. Read more for insights.
DeepSeek Hype Affects Crypto Inflows
The latest CoinShares report indicates that last week’s crypto inflows reached only $527 million, a significant shift influenced by prevailing market trends and investor sentiment. This figure marks a stark contrast to the inflows of $1.9 billion and $2.2 billion observed in the previous two weeks.
As reported by COINOTAG, the surge in inflows during the past weeks was abruptly halted due to the frenzy surrounding DeepSeek, an AI agent that temporarily drained liquidity from both crypto and stock markets. CoinShares’ James Butterfill commented, “The retraction in crypto inflows is closely tied to the DeepSeek developments that triggered substantial outflows.”
“Digital asset investment products saw inflows totaling $527 million last week. However, intra-week flows reflected volatile investor sentiment, heavily influenced by broader market concerns, such as the DeepSeek news, which triggered $530 million in outflows on Monday,” Butterfill elaborated.
The news regarding China’s AI platform led to $530 million in outflows early in the week. Although the market began to rebound later on, resulting in over $1 billion in fresh inflows, it was insufficient to sustain inflows close to the $2 billion threshold achieved earlier this month.
Notably, Bitcoin (BTC) continued to facilitate positive investor sentiment, racking up $486 million in inflows despite the uncertainties that plagued other assets.
Crypto Inflows Last Week. Source: CoinShares
Last week, the impact of DeepSeek-related excitement led to $1 billion in crypto liquidations in a single day, exacerbating the sector’s pervasive uncertainty. Moreover, the reaction extended beyond digital assets, influencing both crypto miner stocks and AI-related equities like Nvidia.
“DeepSeek vibes are definitely shaking things up,” shared Emily, a notable voice on social media, reflecting widespread sentiments of apprehension across the industry. However, the landscape has started to recover, particularly for AI agent coins, which rebounded despite DeepSeek’s initial setbacks.
In addition to the effects of the DeepSeek hype, ongoing economic concerns—such as increasing trade tensions and significant US jobs data—may further dictate investor behavior in the coming weeks. Trade tensions resulting from new tariffs imposed by President Biden have sparked over $2 billion in liquidations, as evidenced by Coinglass documentation that indicated over 730,000 traders faced significant losses on Monday.
Conclusion
In summary, while crypto inflows have taken a hit due to the hype surrounding DeepSeek, key assets like Bitcoin have shown notable resilience, suggesting robust investor interest remains. Looking ahead, external market pressures, driven by economic uncertainties and trade tensions, may continue to influence overall inflows into digital assets. The current landscape underscores the importance of monitoring evolving trends and macroeconomic factors as they unfold.
