- DeepSeek’s launch disrupts crypto markets, triggering volatility and sharp declines in mining stocks.
- Federal Reserve’s rate decision and tech earnings are crucial for market recovery and momentum.
The launch of DeepSeek, a Chinese, open-source LLM, has sent ripples through the cryptocurrency market, triggering a notable downturn in certain crypto mining stocks.
This also led to a sharp sell-off in the crypto market but, the latest data from CoinMarketCap shows signs of recovery, with the market cap climbing to $3.51 trillion, a 4.63% increase within a day.
Bitcoin [BTC] mirrored this rebound, trading at $102,800.76 following a 3.82% rise in 24 hours.
The role of DeepSeek in market collapse
Despite BTC’s bullish pullback, though, the unveiling of DeepSeek has cast doubts on the perceived value of crypto mining firms as data-processing centers.
The market turbulence also led to massive liquidations, with over $861 million wiped out across 316,282 traders, highlighting the volatility sparked by this disruptive AI innovation.
Ash Crypto, a seasoned expert in the industry, highlighted that the heightened volatility is more reflective of “broader market reactions” tied to DeepSeek’s growing influence rather than isolated factors within the crypto sector.
He said,
“This has nothing to do with the crypto market and everything to do with the US stock market,”
Echoing this sentiment, Ran Neuner, founder of Crypto Banter, cautioned about the far-reaching consequences of DeepSeek’s emergence and noted,
“If these stocks take a hit, people will lose fortunes, and this could
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Author: Ishika Kumari
