Bitcoin Miners Plummet Amid AI Fears and Halving Impact
Bitcoin Miners Face Significant Drops Amid Market Reactions to AI Developments and Recent Halving Impacts
Bitcoin miners, particularly those involved in powering artificial intelligence (AI) ventures, have experienced significant drops in their stock prices. Core Scientific (CORZ) and Terawulf (WULF) have seen their shares plummet by nearly 33% and 32%, respectively, while other crypto-related stocks like Coinbase Global (COIN) and MicroStrategy (MSTR) have also fallen by around 10%.
The sell-off in crypto stocks comes as the price of Bitcoin falls below the key level of $100,000 amid a broad decline in technology stocks. The panic in equity markets has been sparked by the emergence of Chinese AI model DeepSeek, which was reportedly created in two months at a cost of only $6 million. The cheap cost of DeepSeek has raised concerns about the billions of dollars U.S. technology companies are spending to develop AI models and data centers. Other cryptocurrencies are suffering steeper losses than Bitcoin, with Solana (SOL), XRP (XRP), and Dogecoin (DOGE) each down 10% or more.
Bitcoin's price has fluctuated sharply following the launch of the DeepSeek AI app, igniting fears of risk across various markets. Over $864 million was lost to liquidations, revealing trader anxiety amid increasing competition in technology. Arthur Hayes, co-founder of BitMEX, warned of a potential Bitcoin correction while also projecting an end-of-year price of $250,000, contingent on renewed monetary easing.
The recent volatility in Bitcoin and altcoin markets caused by the launch of the DeepSeek AI app has analysts and investors assessing key price movements and market sentiment. Bitcoin's technical analysis shows a crucial test to sustain levels above the 50-day simple moving average (SMA). A close examination of the price dynamics reveals that while the bulls are attempting to protect this threshold, dropping below it could unleash a wave of selling pressure, pushing Bitcoin to its immediate support levels between $90,000 and $85,000.
Traders are now looking ahead to the Federal Open Market Committee meeting to gauge future monetary policy moves. If indicators suggest a continuation of the current stance, it may provide the necessary catalyst for