This week may go down in history as a turning point, a before and after in the revolution we are experiencing, financial markets, cryptocurrencies and blockchain technology were shaken by DeepSeek and a blow on the table of China.

DeepSeek Revolutionizes Artificial Intelligence: The Chinese company DeepSeek launched its generative artificial intelligence model R1, which competes with tools such as ChatGPT, but developed with fewer resources and open source (open source is one of the qualities that cryptonauts like the most, open source is seen as synonymous with freedom and decentralization). This advance has generated concern among large technology corporations and has encouraged the emergence of new developers, we will have to wait to see if the market overestimated the profit that companies could have with the development of chips for artificial intelligence $NVDA, it may be the potential of a black swan, we will see if it manages to get out of the shell.

The emergence of DeepSeek has impacted financial markets, generating concern among investors. Despite this turbulence, the US stock market seems to be stabilizing thanks to solid results from companies such as Apple, which rose by 5.32% weighted in the last 5 days, and Meta, which rose by 10% in the last 5 days. From a more speculative perspective, it may be time to diversify investments beyond the large US technology companies, looking towards emerging markets and less concentrated sectors.

Decisions of the US Federal Reserve:

In its first meeting under the new mandate of President Donald Trump, Jerome Powell stands firm in the first round against the president. The Federal Reserve (Fed) decided to keep interest rates in the range of 4.25% to 4.50%, which generated some concern in the market, increasing the possibility of a recession. This decision comes after three consecutive cuts since September 2024. The Fed noted that the risks to employment and inflation are balanced, highlighting that the economy continues to grow at a solid pace, with the unemployment rate stabilizing at low levels. In the third quarter of 2024, GDP grew at an annualized rate of 3.1%, and 256,000 non-agricultural jobs were created in December. Inflation stands at 2.4%, slightly above the 2% target. Everything looks surprisingly good for the United States during 2025, while several economies in the world are at growth levels above 0% (Germany for example), perhaps it is time to be skeptical about the strength of the US.

Crypto World

Bitpanda Obtains MiCA License: Austrian cryptocurrency platform Bitpanda has become the first to obtain a license under the Markets in Cryptoassets Regulation (MiCA), issued by the German Federal Financial Supervisory Authority (BaFin). This regulation allows Bitpanda to operate in all 27 countries of the European Union, establishing rules for the management, offering, exchange and transfer of cryptoassets, as well as the issuance of stablecoins and digital assets. The regulation requires crypto service providers to obtain a license and meet minimum capital requirements to mitigate risks.

(we noticed a greater bullish sentiment in the crypto market compared to the traditional market index)

This achievement facilitates the expansion of Bitpanda, which reached 6 million customers by the end of 2024.

We could say that this is the first big step in Europe giving the green light to crypto regulation, unfortunately the news went unnoticed by all the DeepSeek madness (we gave this article to Deepseek to tell us their opinion, the quality of DeepSeek's AI surprised us, but it is true that it needs many improvements, the path has just begun in the depths of AI)

Let's move on to the more speculative part of Bitcoin, which this week managed to mark a decorrelation with the market when the DeepSeek news moved the floor, the optimism in the community is clear and this week Ethereum began to position itself as a trend, market analysts project that, at the highest point of the current cycle, Bitcoin could reach $130,000, while Ethereum could trade above $5,000.

Bitcoin (BTC) registered a price of 99,309.00 USD, with a decrease of 2.56% compared to the previous close. The intraday high was 102,276.00 USD, while the low reached 98,188.00 USD. For its part, Ethereum (ETH) traded at 3,098.91 USD, experiencing a drop of 4.44% compared to the previous close. ETH's intraday high was $3,262.19 and its low was $3,050.42. (although since Saturday night, February 1, the entire sector has been in the red, marking weekly lows on Sunday, February 2)

A key point to follow next week is the price of altcoins, especially those related to the ethereum ecosystem, $AVAX, $AVEE, $OP, $ARB among others. Since bitcoin dominance seems to be reaching a key point in favor of Ethereum, the markets are keeping an eye on $ETH in the near future.

KuCoin fined in the United States

The cryptocurrency exchange KuCoin has been fined almost $300 million for operating without a license in the United States and for not complying with anti-money laundering and terrorist financing regulations. Peken Global, an entity associated with KuCoin, pleaded guilty and agreed to pay fines and restitution valued at $297.5 million. In addition, KuCoin will cease operations in the United States for at least two years, and its founders, Chun Gan and Ke Tang, will not participate in the management of the company during this period. Since its launch in 2017, the platform facilitated transactions without requiring identification, which allowed suspicious movements worth billions of dollars, which did not please the US government.

Debate on Cryptocurrency Regulation in the United States

Cryptocurrencies have entered the political agenda of the Trump administration, which is considering granting more powers to the Commodity Futures Trading Commission (CFTC) over these assets, instead of the Securities and Exchange Commission (SEC). This proposal is based on the premise that cryptocurrencies are more similar to raw materials such as oil than to traditional securities. This debate could have significant implications for regulation and the future of the crypto market in the United States.

I heard a very wise robotic bull once say: ¨When regulation advances, decentralization grows as a response to freedom.¨ NuDEX

With this quote we say goodbye for this week friends, remember that the like button is mandatory and that you can comment, suggest topics, graphics or topics of interest that you want to read in future articles.