#DeepSeekImpact DeepSeek, a Chinese AI startup, has recently made significant advancements in artificial intelligence, notably with the release of DeepSeek-R1, an open-source model rivaling OpenAI's Model o1. This development has had a notable impact on the cryptocurrency market.
Following DeepSeek's announcement, Bitcoin's price briefly dipped below $100,000, trading as low as $97,740 before recovering to around $101,518. This decline was part of a broader tech selloff triggered by DeepSeek's emergence, highlighting the correlation between Bitcoin and tech stocks. Analysts have observed that de-risking strategies and this correlation are influencing market flows, with Bitcoin's rolling six-month correlation with the Nasdaq Composite standing at around 0.5, its highest since March 2023.
In response to DeepSeek's rise, over 75 unofficial tokens claiming affiliation with DeepSeek have emerged, primarily on the Ethereum and Solana blockchains. These tokens are largely considered scams, aiming to exploit traders seeking to capitalize on the AI trend. Investors are advised to exercise caution and conduct thorough research before engaging with such tokens.
Additionally, the DeepSeek AI Agent token (DEEPSEEKAI) has experienced significant volatility, with its price increasing by over 1,100% in a single day, reaching $0.0000000002437. This surge reflects heightened interest in AI-related cryptocurrencies, though the legitimacy and long-term viability of such tokens remain uncertain.
Overall, DeepSeek's advancements in AI have influenced the cryptocurrency market by affecting investor sentiment, contributing to market volatility, and prompting the creation of potentially fraudulent tokens.