Crypto Market Panic [WTF Now?]

Lark Davis

Summary of the Video Transcript

Introduction

The host discusses the current state of cryptomarkets, which are in a panic due to plummeting prices. This panic is attributed to the announcement of Deep Seek AI, a new AI protocol out of China, which has affected the equity markets and, in turn, the crypto markets.

Deep Seek AI and Its Impact

  • Deep Seek AI is compared to Open AI but costs only 3% of the price. It was developed in two months with less than $6 million and reduced capability chips.
  • The announcement has led to a drop in NASDAQ futures, with the host suggesting that the US companies' hundreds of billions of dollars in investment may be at risk.
  • Rumors suggest Deep Seek had access to Nvidia H100 GPUs, though this is unconfirmed.

Market Analysis

  • The host notes that despite the turbulence, they remain bullish on 2025 due to various positive developments, including the first pro-crypto administration in the USA and the potential for Bitcoin ETFs.
  • Bitcoin ETFs: Black Rock's Bitcoin ETF will allow for in-kind redemptions, meaning investors can take actual Bitcoin out of their ETF, which is seen as a positive development.
  • Eric Trump's Announcement: There's news that US-based crypto projects might benefit from zero capital gains tax, which could lead to companies reorganizing to take advantage of this.

Jupiter and Altcoin News

  • Jupiter: Big news includes the acquisition of a majority stake in Moonshot, a platform for buying coins with Apple Pay, and the announcement of a 50% buyback of Jupiter tokens from protocol fees.
  • Altcoins: The host discusses the potential for an altcoin season, favoring top altcoins like Avalanche, Suey, and Aptos due to their history and brand recognition.

Market Sentiment and Predictions

  • The host believes the current situation is an overreaction and remains positive about the future, especially with developments like lower capital gains tax for US-based crypto projects.
  • Arthur Hayes' Prediction: A potential pullback to $70,000 to $75,000 for Bitcoin is discussed, which could significantly impact altcoins.

Conclusion

  • The host concludes by advising viewers to stay positive, not get liquidated, and survive the current market turbulence, emphasizing the excitement and volatility of the crypto marketplace.