"Bitcoin Plunges Below $100K as China's DeepSeek AI Shakes Markets"

Bitcoin Takes a Dive Below $100K as China’s DeepSeek Rattles Markets

Bitcoin, the world's leading cryptocurrency, has taken a significant tumble, falling below the $100,000 mark, as China's DeepSeek AI startup sends shockwaves through global financial markets. The sudden rise of DeepSeek, which has positioned itself as a competitor to established AI giants like OpenAI, Meta, and Nvidia, has sparked a sharp sell-off in the crypto market, with Bitcoin dropping over 5% in a matter of hours.

The crypto market bloodbath has seen major altcoins also take a hit, with many experiencing declines of 8-10%. According to data from Coinglass, over 316,000 traders have been liquidated in the past 24 hours, with total liquidations reaching approximately $861.48 million. The market capitalization of AI crypto tokens has also taken a hit, dropping by almost 13% to $36.4 billion.

Industry experts have attributed the market crash to DeepSeek's growing popularity and its implications for the stock market. Ash Crypto, an industry veteran, believes that the volatility is a result of broader market reactions stemming from DeepSeek's ascent. He suggests that the crypto downturn is linked to a reevaluation of overvalued tech stocks in light of DeepSeek's competitive edge.

Ran Neuner, founder of Crypto Banter, echoes these sentiments, warning of the potential ripple effects of DeepSeek's emergence. He argues that the wealth generated by AI and tech stocks in recent years has been a significant driver of risk-on investment in crypto markets. If these stocks take a hit, people will lose fortunes, potentially crashing all risk markets as people scramble out of risk.

Despite the immediate market turbulence, some experts see long-term opportunities in the intersection of AI and crypto. Tommy Shaughnessy of Delphi Ventures emphasizes the potential for intelligent applications and agents to transform industries, driving innovation and value creation at the application layer. Neuner, while acknowledging the risks, also highlights the potential for this disruption to force governments to reassess monetary policy.

DeepSeek's emergence as a disruptive competitor has sparked debate among experts about its long-term implications. Adam Kobeissi, founder of The Kobeissi Letter, highlights DeepSeek's