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Crypto Inflows Fall to $527 Million Amid DeepSeek AI Impact
Crypto inflows dropped to $527 million last week from nearly $2 billion due to market volatility influenced by DeepSeek AI hype. Key points include:
- Investor sentiment was impacted by DeepSeek’s rise, leading to $530 million in outflows on Monday.
- Despite the downturn, Bitcoin attracted $486 million in inflows, indicating sustained interest.
- Market showed recovery signs with over $1 billion in fresh inflows later in the week.
- Concerns remain regarding escalating trade tensions and their potential impact on the market.
- Economic factors like US jobs data are likely to continue influencing investor behavior.
Lennix Lai of OKX highlighted that institutional involvement through ETFs might keep major cryptocurrencies correlated with risk assets. The market's long-term outlook remains uncertain as it navigates these challenges.