The release of DeepSeek's next-gen model has sent shockwaves through the stock market, and the impact on Bitcoin could be significant. Since the October crash, the relationship between equities and crypto has become increasingly complex, with investor confidence shifting towards traditional markets.
As macro volatility continues to drive capital out of risk assets, the wider crypto market faces heightened capitulation risks. The Bitcoin Fear & Greed Index remains in extreme fear zones, indicating persistent bearish sentiment that could amplify price swings in response to minor shocks in equities.
The market is already pricing in a $60k break next, and growing FUD around DeepSeek's release suggests that this positioning isn't a fluke. Historical trends point to potential wipeouts, and Bitcoin's relative weakness compared to equities adds to the concern.