Bitcoin drop fueled by shakeup in AI sector casts cloud over crypto rally
DeepSeek, a selloff that raises questions about the crypto outlook after last year’s boom.
Bitcoin churned at $101,800 as of 10:21 a.m. Tuesday in Singapore, holding most of a 3% drop from the prior session. Tokens such as Ether and Solana shouldered bigger hits in the slipstream of a plunge in the Nasdaq 100 Index of US tech stocks.
The sudden success of DeepSeek’s open-source platform signals growing AI competition from China, exacerbating worries over the sector’s rich valuations in the US. The risk for crypto is that equity market angst erodes wider speculative appetite, countering the tailwind from President Donald Trump’s executive order in favor of supportive digital-asset regulations.
Bitcoin’s tight correlation with US tech stocks underlines the vulnerability. A 30-day correlation coefficient for the cryptocurrency and the Nasdaq 100 is at about 0.67, data compiled by Bloomberg show. A reading of 1 indicates assets are moving in lockstep, while minus 1 signals an inverse tie.
Did you Know?
The world of cryptocurrencies is very dynamic. Prices can go up or down in a matter of seconds. Thus, having reliable answers to such questions is crucial for investors.
View Details»
Stock Trading
Maximise Returns by
