"Bitcoin Plunges as Chinese AI App DeepSeek Disrupts Markets"

Bitcoin Falls Below $100,000 Amid Chinese AI App Market Disruption

Bitcoin, the world's leading cryptocurrency, has experienced a significant drop in price, falling below the $100,000 mark. This decline comes amidst the disruption caused by the emergence of Chinese AI app DeepSeek, which has sparked a sell-off in the crypto market.

The sudden rise of DeepSeek, a Chinese AI startup, has sent shockwaves through global financial markets. Founded less than two years ago, DeepSeek has risen to prominence, positioning itself as a competitor to established AI giants like OpenAI, Meta, and Nvidia. Its rapid ascent has led to a sharp sell-off in the crypto market, with Bitcoin (BTC) dropping over 5% in a matter of hours and major altcoins seeing even steeper declines of 8–10%.

According to data on Coinglass, in the past 24 hours, 316,282 traders were liquidated, with the total liquidations reaching $861.48 million as of this writing. Some industry experts attribute this market crash to DeepSeek's growing popularity and its implications for the stock market. Ash Crypto, an industry veteran, attributed this volatility to broader market reactions stemming from DeepSeek's ascent, noting that it has nothing to do with the crypto market and everything to do with the US stock market.

Ran Neuner, founder of Crypto Banter, issued a stark warning about the potential ripple effects of DeepSeek's emergence. He argued 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, and this could crash all risk markets as people scramble out of risk, he said.

The crypto analyst described the situation as a potential "black swan" event. These remarks, among others, highlight how DeepSeek's rise has unsettled markets. With a development cost of under $10 million, DeepSeek has emerged as a disruptive competitor, sparking debate among experts about its long-term implications. Adam Kobeissi, founder of The Kobeissi Letter, highlighted DeepSeek's unprecedented growth, contrasting it with OpenAI's decade-long journey and multibillion-dollar funding.

Tommy Shaughnessy of