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DeepSeek AI's Surge Shakes Crypto Mining and Tech Stocks

Coin WorldWednesday, Jan 29, 2025 6:05 am ET
1min read

DeepSeek AI's Rapid Rise Disrupts Crypto Mining Stocks and Markets

DeepSeek AI, a Chinese artificial intelligence (AI) company, has made waves in the tech industry with its low-cost AI services, raising concerns about market overvaluation. The company's rapid ascent has led to a significant sell-off in tech stocks, with major players like NVIDIA, Alphabet, and Microsoft taking major hits. The launch of DeepSeek's R1 model triggered a massive sell-off in tech stocks, wiping over $1 trillion from the Nasdaq Composite Index.

The impact of DeepSeek AI has not been limited to tech stocks. Crypto mining stocks have also taken a hit, with companies like Riot Platforms (RIOT), Cleanspark (CLSK), Cipher Mining (CIFR), and MARA Holdings (MARA) seeing their stock prices fall by as much as 10%. Coinbase's shares also went down by 10%, and MicroStrategy, the largest corporate holder of Bitcoin, saw a decline of 8.5%.

The arrival of DeepSeek AI has created uncertainty in the market, with analysts unsure if AI investments can last. Bitcoin miners, who were already struggling after Bitcoin's fourth halving in April, have been forced to diversify their operations. Many have expanded their operations beyond mining, venturing into AI and high-performance computing (HPC). CORZ, for instance, signed a 12-year deal with AI firm CoreWeave.

AI crypto tokens have also suffered significant losses, with the total market capitalization for AI crypto tokens dropping 5.11% in the last 24 hours, bringing it to $42.33 billion. Venice Token (VVV), a new project claiming private access to DeepSeek's AI model, led the losses with a 20.29% plunge. Another platform, Virtuals Protocol (VIRTUALS), fell by 11.75%.

The ongoing market downturn highlights the increasing challenges faced by both AI and crypto sectors. As DeepSeek AI continues to disrupt the market, investors and companies alike are grappling with the implications of its low-cost AI services on the overall market valuation and the future of AI investments.

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Qwazarius
01/29
$RIOT some of my posts aren't showing up 🙄🤬 I guess what I'm saying isn't popular... Freedom of speech haha
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TobyAguecheek
01/29
$RIOT started at 11 am today
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Luka77GOATic
01/29
@TobyAguecheek I had $RIOT once, sold too early. FOMO hitting hard now, regretting my decision.
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whiteiversonyeet
01/29
@TobyAguecheek How long you holding $RIOT? Any predictions on its recovery?
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Gentleman1217
01/29
DeepSeek's impact is wild, but opportunities lie ahead.
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BeefMasters1
01/29
Bitcoin miners in AI WATers. CoreWeave deal looks like a lifeline. Who's next to jump in?
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Direct_Name_2996
01/29
DeepSeek's R1 model = market panic button. $1 trillion wiped? Oof, that's a bearish day.
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CrimsonBrit
01/29
@Direct_Name_2996 Oof, indeed.
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CurlyDarkrai
01/29
Time to reevaluate AI investments, the landscape shifted.
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jy725
01/29
Coinbase and MicroStrategy feeling the pinch. Crypto and AI both taking hits. What's the play here?
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SuperNewk
01/29
Low-cost AI = game changer, but watch market valuations.
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googo69
01/29
@SuperNewk Watch out for bubbles, bro.
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Accomplished-Back640
01/29
$NVIDIA taking a hit. Could DeepSeek be the new king of the hill? Time to rethink portfolios.
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aiolyfe
01/29
Diversifying beyond mining is smart; adapt or fade.
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Rockoalol
01/29
Crypto miners diversifying into AI? Maybe they're trying to HODL against the AI tide.
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Outrageous_Kale_3290
01/29
Low-cost AI = game changer. But is the hype worth the hangover? Market's on a wild ride.
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dantheman2108
01/29
@Outrageous_Kale_3290 Think it's just a bubble?
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pfree1234
01/29
Alphabet and Microsoft down. Is the AI dream turning into a nightmare for these giants?
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rvnmsn
01/29
AI crypto tokens tanking. Venice Token leading the plunge. Not a good day to be bullish on VVV.
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MCU_historian
01/29
AI sector challenges mounting. DeepSeek's disruption might shake things up for a while.
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