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"Crypto Crash: Solana Plummets Amid AI Fears, Bitcoin Tumbles Below $100K"

Coin WorldTuesday, Jan 28, 2025 10:03 am ET

1min read

Solana (SOL) Price Prediction for January 28

Solana (SOL) has been on a rollercoaster ride recently, with the crypto market experiencing significant volatility. On Monday, the market plummeted due to concerns about DeepSeek, a Chinese AI model that triggered panic in the market. Tech stocks tanked, dragging crypto down with it. As a result, Solana (SOL) plummeted nearly 7% to $3.38 trillion. The crypto market cap is up nearly 1.50% and is currently at $3.51 trillion.

Markets Crash After Concerns About DeepSake

The cryptocurrency market suffered a spectacular collapse on Monday, declining nearly 7% to $3.38 trillion. Traditional stock markets and tech stocks also witnessed a dramatic collapse due to the emergence of DeepSeek, a Chinese AI model being considered a viable option against ChatGPT, Grok, and Gemini. As a result, Bitcoin (BTC) plummeted below $100,000, falling to a low of $97,906 before recovering to reclaim $100,000. Altcoins and smaller tokens suffered even bigger losses, with XRP losing nearly 14% and Solana (SOL) dropping 11% before recovering some losses. The drop in crypto mirrored weakness and volatility in equity markets, with tech stocks leading the decline.

Bitcoin and tech stocks have become increasingly intertwined following the launch of ETFs that purchase the asset and Donald Trump’s support for the industry. Both actions led to a significant jump in the prices of crypto assets. However, traders have shrugged off President Trump’s executive order to support crypto, stating the industry had already priced in the move, and current prices already reflected the move. Additionally, concerns about DeepSeek and its impact on tech stocks added to the grim mood in crypto on Monday. A report by QCP Asia stated, “The Chinese LLM poses a potential threat to US equity markets by disrupting US AI dominance with their cost efficiency and groundbreaking open-source technology. Now the question is how will Trump retaliate?”

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Investor speculation about the SEC’s plan regarding its appeal against rulings in the Ripple case after James Murphy responded to Ripple’s Chief Legal Officer, Stuart Ald

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