Cryptocurrency markets have been volatile due to uncertain investor sentiment ahead of the FOMC meeting. Bitcoin (BTC) $99,231.3 and leading altcoins experienced a significant decline in their values. American stocks also came under selling pressure with the rise of China-based artificial intelligence company DeepSeek.
Significant Drops in Bitcoin and Altcoins
Bitcoin (BTC) dropped over 3% in the last 24 hours to $101,239. Ethereum (ETH) 
$3,072.0 5%, XRP lost 5% and Solana (SOL) lost 10%. These declines ran in line with the overall market trend, with the total value of the crypto market falling by 3% to $3.47 trillion.
Investor Sentiment and Liquidations
Total transaction volume in the global crypto market increased by 21% as of yesterday, reaching $106.54 billion. While BTC liquidated over $57 million, Ethereum liquidated approximately $30 million. Ripple 
$2.8 The backed XRP fell below $3, causing concern among investors.
The Impact of Artificial Intelligence Company DeepSeek
The rise of China-based open-source AI startup DeepSeek has put pressure on US large-scale tech companies. DeepSeek rose to number one on the App Store, leaving behind leading American artificial intelligence companies such as OpenAI and Meta. This development also caused declines in Nasdaq 100 futures.
“Altseason is finally here and utility tokens are about to explode,” said renowned crypto analyst Ash Crypto.
Despite these fluctuations in the cryptocurrency market, some analysts remain positive about the future. VanEck’s digital asset strategist Gabor Gurbacs criticized the rise of DeepSeek and argued that the United States should invest in Bitcoin.
Meme cryptocurrencies also follow the general downward trend, Dogecoin 
$0.313883 (DOGE) lost 8%, Shiba Inu (SHIB) lost 7%, and PEPE and TRUMP lost 13%. This has caused investors to be cautious in the face of general market uncertainty.
These recent fluctuations in the cryptocurrency markets have caused investors to be more careful before the FOMC meeting. Market-wide uncertainty and increased liquidations indicate that crypto assets may be more volatile in the short term.
Significant price declines and developments in the AI sector reveal that cryptocurrency markets are influenced by broader economic and technological factors. It is important for investors to determine their strategies by taking these dynamics into consideration.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
