The recent decline in cryptocurrency market prices can be attributed to the release of DeepSeek R1, an open-source model by the Chinese AI laboratory DeepSeek. This development has caused significant disruption in the crypto market, particularly affecting AI-related tokens. The price drop was accompanied by a wave of liquidations of leveraged positions, with market liquidations reaching approximately $853 million in the past 24 hours.
Market Impact and Recovery Outlook
The overall impact on the cryptocurrency market has been substantial, with many digital assets experiencing notable price decreases. This event highlights the sensitivity of the crypto market to technological advancements and news, especially in the rapidly evolving field of artificial intelligence.
