đĽ Whatâs happening in the market? Why is everything falling?
đŽ Chances are, youâre waking up and asking yourself this question if youâve already glanced at the markets â and trust me, youâre not alone.
âĄď¸ The sell-off was triggered by a Chinese startup, #DeepSeek , which introduced a new AI model. With just $10 million in investment and a 200-person team, their model has proven far more efficient and cost-effective than OpenAI and other competitors.
đ As a result, Nvidia investors and others in the AI sector are now questioning why theyâre paying such a premium. This news caused a sell-off in Nasdaq futures, with Nvidia stock down more than 10% in premarket trading. Unsurprisingly, the crypto market followed the stock market's lead.
â Some articles are already calling DeepSeek the "black swan" of the AI industry, speculating that Nvidia may no longer be necessary. But is the situation really that dire? Letâs dive in!
â ď¸ First, itâs worth noting that DeepSeek has a significant supply of Nvidia chips and access to cloud computing resources outside of China. Additionally, their model struggles with complex tasks and could face U.S. government sanctions or even be blocked if necessary.
đ¤ My personal take on the situation: It feels like fear is being deliberately amplified to intensify the sell-off effect. It wouldnât be surprising if influential figures already had advance knowledge of the FOMC decision on interest rates and GDP data and decided to stir things up ahead of time.
đ° At the moment, #bitcoin has entered a key buyer interest zone, falling below $100K on #Binance . If the above theory holds true, it wouldnât be surprising to see $BTC rebound above $100K soon and, on positive economic data, continue its climb toward an all-time high in the $100K-$110K range.
Of course if these influential figures would not want to buy #crypto even more cheaperđ
NFA&DYOR
