AI Frenzy Cools: Crypto Miners Tumble as Nvidia Rallies

Crypto mining stocks are under pressure for the second consecutive day as concerns over AI-driven market overvaluation erode investor confidence. Riot Platforms (RIOT) has dropped 4.37% on Jan. 28, while Cleanspark (CLSK) and MARA Holdings (MARA) have slipped 2.47% and 0.14%, respectively. Meanwhile, the S&P 500 has gained momentum, recovering from the chaos triggered by DeepSeek's new AI model, which sent shockwaves through the market just a day earlier.

Nvidia (NVDA), a leading chipmaker, has staged the biggest rebound among U.S. tech giants, surging over 8.8% after tumbling 17% on Jan. 27. Other major players, including Apple (AAPL), Amazon (AMZN), and Microsoft (MSFT), have also posted solid gains, with the S&P 500 recording its third-largest single-day market cap increase in history.

AI-focused crypto tokens continue their slide, with the sector's market capitalization shedding 5.11% in the past 24 hours. The Venice Token (VVV), linked to DeepSeek's AI model, has plunged 20.29%, leading the declines, while Virtuals Protocol (VIRTUALS) has lost 11.75%.

Bitcoin remains steady near the crucial $100,000 mark, as traders await the Federal Open Market Committee's interest rate decision on Jan. 29. Market expectations suggest a 99.5% probability that the Fed will keep rates unchanged at 4.25% to 4.50%.