Analyst predicts bitcoin rally to $200K in potential repeat of 2015 market cycle
Crypto analyst Ali Martinez suggests that Bitcoin (BTC) may be gearing up for a massive parabolic rally, potentially mirroring its 2015–2018 market cycle. Martinez, who has 120,600 followers on X, highlights striking similarities between Bitcoin’s current price action and its historical performance during that cycle.
According to Martinez, Bitcoin could be nearing the final stages of a downward correction before launching a major upward surge. “Historically, it was around this point when BTC went parabolic,” he noted, referring to charts that suggest Bitcoin is on the verge of a significant breakout.
Martinez uses the Wyckoff Method, a trading strategy that identifies market cycle tops and bottoms, to predict that Bitcoin’s next rally could push its price to as high as $200,000. However, he cautions that this could represent the cycle top, followed by the “Distribution Phase.”
In the Wyckoff Method, the Distribution Phase occurs at the end of a bull market when investors begin offloading their holdings at peak prices. This phase often precedes the start of a bear market, meaning that while Bitcoin may enjoy an explosive rally, it could eventually lead to a market downturn.
Currently trading at $101,853, Bitcoin’s price aligns with Martinez’s theory that the asset is nearing the final leg of a bull cycle. However, the analyst warns that once BTC reaches the Distribution Phase, investors should be prepared for a possible decline.
If the 2015 cycle repeats, Bitcoin holders could see dramatic gains, but they must also remain vigilant about timing their exits to avoid potential losses during the subsequent bear market.
Source: DailyHodl
Trump-backed World Liberty acquires $10M in Ethereum amid crypto sell-off
World Liberty Financial, the cryptocurrency project supported by former U.S. President Donald Trump, has added another $10 million worth of Ethereum (ETH) to its portfolio. On January 27, the project purchased 3,247 ETH through Cow Protocol, following an earlier acquisition of $47 million in ETH on Trump’s inauguration day. This brings World Liberty Financial’s total Ethereum holdings to 59,265 ETH, valued at approximately $185 million.
The purchase occurred amid a significant crypto market sell-off triggered by negative reactions to China’s new AI app, DeepSeek. Bitcoin’s price fell below $100,000, touching lows near $97,900, while Ethereum dropped to nearly $3,000. This market downturn led to nearly $1 billion in liquidations across the crypto space. World Liberty Financial seized the opportunity to buy Ethereum during the dip.
In addition to Ethereum, the Trump-backed project has diversified its holdings with over $65 million in Wrapped Bitcoin (WBTC), $60 million in Lido Staked ETH (STETH), and $33 million in USDC stablecoin. The portfolio also includes other tokens such as USDT, LINK, AAVE, and ENA, bringing its total crypto holdings to more than $381 million.
World Liberty’s recent activity mirrors the aggressive crypto acquisition strategy of MicroStrategy, which added over $1 billion worth of Bitcoin to its holdings during the same period. MicroStrategy now owns 471,107 BTC, purchased at an average price of $64,511, with a total cost of $30.4 billion.
The strategic acquisition of ETH during market volatility underscores World Liberty Financial’s commitment to cryptocurrency investments, solidifying its position in the rapidly evolving digital asset landscape.
Source: Coinjournal
DeepSeek R1 redefines global AI competition
The release of DeepSeek R1, an open-source large-language AI model developed in China, has disrupted long-standing beliefs about AI development. Costing only $6 million to train, DeepSeek R1 matches the performance of leading AI models, challenging assumptions about scalability, cost, and the dominance of Silicon Valley in the AI landscape.
Venture capitalist Nic Carter highlighted that the success of DeepSeek R1 disproves the notion that China would only produce closed-source AI. It also undermines OpenAI’s perceived competitive edge and shows that China has rapidly closed the AI development gap with the United States, contrary to previous reports suggesting a six-month lag.
China’s advancements come despite the U.S. imposing a chip embargo in October 2022, restricting the export of high-performance chips from Nvidia and AMD. Chinese firms bypassed these limitations through domestic manufacturing and cloud computing platforms. Additionally, China’s regulatory easing in August 2023 fostered innovation by eliminating penalties for deviations from industry standards.
This breakthrough underscores the intensifying global AI arms race. Former U.S. President Donald Trump has emphasized AI and cryptocurrency as pillars of U.S. dominance. At the Davos summit, he announced the $500 billion “Stargate” initiative to build high-performance computing data centers in the U.S., creating 100,000 jobs. The project involves major players like OpenAI, Oracle, and SoftBank.
Similarly, U.K. Prime Minister Keir Starmer unveiled plans to fast-track AI infrastructure development to remain competitive globally. With these developments, the race to lead in AI innovation and infrastructure is accelerating, reshaping global technology dynamics.
Source: Cointelegraph