Stocks and Investing
Stocks and Investing
Tue, January 28, 2025
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Why China's DeepSeek is causing Bitcoin and crypto market to plunge
- Bitcoin (BTC) slipped below $100,000 on Monday as China-based artificial intelligence (AI) model DeepSeek began gaining popularity across the US market, overtaking OpenAI's ChatGPT. DeepSeek's impact also led to rapid declines in the stock market with NASDAQ
- spearheaded by Nvidia
- diving more than 3%.
The article from FXStreet discusses the impact of China's DeepSeek AI on the cryptocurrency market, particularly Bitcoin. DeepSeek, a new AI model developed by China, has introduced significant advancements in AI technology, leading to concerns about potential regulatory crackdowns on cryptocurrencies in China. This fear stems from the possibility that enhanced AI capabilities could be used to monitor and control cryptocurrency transactions more effectively, thereby reducing the anonymity and freedom that crypto enthusiasts value. As a result, the crypto market, including Bitcoin, experienced a sharp decline in value. Investors are reacting to the uncertainty around how China might leverage this new technology to tighten its grip on digital currencies, causing a sell-off in the market. The article also touches on the broader implications of AI in financial markets and how geopolitical moves by major powers like China can sway investor sentiment and market dynamics.
Read the Full FXStreet Article at:
[ https://www.fxstreet.com/cryptocurrencies/news/why-chinas-deepseek-is-causing-bitcoin-and-crypto-market-to-plunge-202501272010 ]
Read the Full FXStreet Article at:
[ https://www.fxstreet.com/cryptocurrencies/news/why-chinas-deepseek-is-causing-bitcoin-and-crypto-market-to-plunge-202501272010 ]
Contributing Sources
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