"DeepSeek Surge Triggers $1B Crypto Sell-Off, Bitcoin Drops Below $100K"

DeepSeek's Rise Sparks Crypto Sell-Off, Nearly $1 Billion Liquidated in 24 Hours

In a dramatic turn of events, the sudden rise of DeepSeek, a Chinese AI application, has sent shockwaves through the global cryptocurrency market. The app's unexpected ascent to the top of the U.S. App Store charts has triggered a wave of uncertainty, leading to a significant sell-off across major cryptocurrencies.

Bitcoin, the world's largest cryptocurrency, plummeted below the $100,000 mark for the first time since Donald Trump's inauguration. The drop to $98,046 comes as investors grapple with the implications of DeepSeek's success and broader volatility in the U.S. AI market.

Alvin Kan, COO at Bitget Wallet, attributed the sell-off to investor concerns about the hype surrounding DeepSeek and the lack of anticipated rate cuts from the upcoming Federal Reserve meeting. He noted that the market is pricing in a more hawkish tone, adding to the cautious mood.

Monday proved brutal for cryptocurrency traders, with major coins taking double-digit percentage hits. Solana (SOL-USD) and Dogecoin (DOGE-USD) each tumbled over 10%, while similar plummets were seen across other major cryptocurrencies including Ethereum (ETH-USD), XRP (XRP-USD), and BNB (BNB-USD). The overall crypto market cap shrank by 8.5% by the end of the day in Asian markets, with $770 million in bullish positions liquidated, nearing the high seen on January 18th.

The massive sell-off was largely driven by investor reactions to both the unexpected rise of DeepSeek and the hawkish signals from the U.S. Federal Reserve. These stark market movements illustrate a broader trend of AI innovations impacting financial markets and the potential for increased volatility surrounding Fed decisions.

At the time of writing, the largest single liquidation order was recorded on HTX—a tether-margined Bitcoin trade valued at $98.4 million.

DeepSeek's remarkable ascent has caused a ripple effect in the crypto markets, leading to a staggering $1 billion sell-off and significantly impacting major cryptocurrencies. As a product developed in under two years with