DeepSeek AI ’s cost-cutting technology may help reduce inflation , creating favorable conditions for Bitcoin (BTC), according to Standard Chartered’s Geoffrey Kendrick . While Bitcoin recently dipped 1.6% , analysts expect a rebound , especially as investors closely watch the Federal Reserve’s rate decision . With Bitcoin ETF inflows surpassing $38 billion and institutional adoption rising, Kendrick predicts pension funds and long-term investors will increase BTC exposure in 2025 , as reported by Decrypt . Economic uncertainty may further solidify Bitcoin’s role as a store of value , making it an attractive hedge against inflation . How DeepSeek AI’s Efficiency Could Benefit Bitcoin DeepSeek AI , a low-cost artificial intelligence model , has the potential to lower operational expenses across industries , leading to reduced inflationary pressure . Why This Matters for Bitcoin: Lower Inflation Strengthens BTC’s Value Proposition – Bitcoin is seen as a hedge against fiat devaluation , benefiting when inflation slows . Fed’s Rate Decisions Become Less Hawkish – If inflation falls, the Federal Reserve may ease interest rate policies , making risk assets like Bitcoin more attractive . Increased Institutional Investment – Lower inflation and stable economic conditions could encourage more pension funds and institutions to allocate to BTC . If DeepSeek AI’s efficiency leads to cost reductions , Bitcoin could see stronger demand from institutional investors seeking an inflation-resistant asset . Bitcoin ETF Inflows & Institutional Adoption Continue Rising Bitcoin’s ETF market is booming , with inflows surpassing $38 billion as institutional interest continues accelerating . Key Institutional Trends: Pension Funds Expected to Enter the Market – Kendrick predicts that major pension funds will increase BTC allocations in 2025 . Wall Street Adoption Expands – Traditional financial firms are offering Bitcoin exposure to clients. Bitcoin as a Store of Value Strengthens – Economic uncertainty is driving institutional investors toward BTC as a safe-haven asset . As corporate and institutional demand grows , Bitcoin is cementing its role as a long-term financial asset . What’s Next for Bitcoin? Potential BTC Rebound – Analysts expect Bitcoin to recover from its recent 1.6% dip . Federal Reserve Rate Decision – A dovish stance from the Fed could drive higher Bitcoin inflows . Further Institutional Adoption – Pension funds and investment firms may accelerate BTC accumulation . If DeepSeek AI’s cost-cutting impact materializes , Bitcoin could gain further strength as a preferred inflation hedge . FAQs How could DeepSeek AI impact Bitcoin? DeepSeek AI’s cost-efficiency may lower inflation , leading to more favorable economic conditions for Bitcoin’s growth . Why are institutions increasing Bitcoin exposure? Bitcoin’s store-of-value properties and inflation hedge appeal make it an attractive asset for pension funds and institutions . How much have Bitcoin ETFs accumulated so far? Bitcoin ETFs have seen over $38 billion in inflows , reflecting strong institutional demand . What role does inflation play in Bitcoin’s price movement? When inflation is high, Bitcoin is viewed as a hedge . If inflation slows , Fed policy may become more favorable for BTC growth . What could drive Bitcoin’s price higher in 2025? Institutional accumulation (pension funds, ETFs, hedge funds) Economic uncertainty reinforcing Bitcoin’s store-of-value appeal Potential Federal Reserve rate cuts boosting risk asset demand Conclusion Standard Chartered’s analysis suggests that DeepSeek AI’s lower costs could help reduce inflation , indirectly benefiting Bitcoin’s long-term adoption and price stability . With institutional demand rising and Bitcoin ETFs surpassing $38 billion in inflows , BTC’s role as a store of value continues strengthening . As economic uncertainty persists , more long-term investors are expected to enter the Bitcoin market in 2025 . To learn more about the innovative startups shaping the future of the crypto industry, explore our article on latest news , where we delve into the most promising ventures and their potential to disrupt traditional industries.
