DeepSeek’s AI Breakthrough Triggers Fears In Tech Sector, Impacting Bitcoin Prices
The cryptocurrency market has faced a downturn as January ends, with Bitcoin (BTC) dropping 3% to $101,400 and earlier lows of $97,750. The CoinDesk 20 index declined by 7%. The Nasdaq composite index fell over 3% due to concerns about a Chinese AI startup, DeepSeek, which could impact US dominance in AI technology. Major cryptocurrency exchanges like Coinbase and MicroStrategy saw their shares fall by about 2%, while Bitcoin mining companies experienced larger losses, with Core Scientific down 21%. Over $250 million in long liquidations occurred among traders, exacerbating market volatility. Disappointment followed President Trump's executive order on cryptocurrency, which did not meet investor expectations. Market focus is now on the upcoming Federal Reserve meeting, with investors hoping for a dovish stance. Despite recent declines, market strategist Joel Kruger indicated that the overall trend for Bitcoin remains positive.
