The emergence of DeepSeek, an AI startup from China, has created a shockwave in the technology sector, pushing Bitcoin's price below $98,000 and causing a significant drop in the Nasdaq stock market.

DeepSeek: A Major Challenge for Big Tech

DeepSeek has just launched an open-source AI model named #DeepSeekR1 , claimed to be superior to the most advanced AI systems of OpenAI, yet significantly cheaper.

  • Operating costs: Up to 98% lower than OpenAI's top model.

  • Training costs: Also much lower than competitors like OpenAI's GPT, #meta , or Tesla.

This model raises questions among investors about the effectiveness of the billions of dollars that major tech firms have poured into AI.

Bitcoin and Nasdaq Under Pressure

Last Monday, Nasdaq – which heavily relies on the AI wave – dropped by 3.5%, while Bitcoin lost 5%, falling to $99,600.

According to data from CoinGlass, over $966 million has been liquidated in the crypto market within 24 hours, as investors are affected by selling pressure.

Impact from U.S. Politics

Last week, President Donald Trump's inauguration significantly impacted the crypto market.

  • The SEC announces the establishment of a crypto task force and removes controversial accounting rules.

  • A new executive order was also signed to create a "digital asset reserve", although not to purchase Bitcoin but to use seized digital assets.

However, analysts such as Kendrick Geoffrey from Standard Chartered believe this is a disappointment, as the decree does not directly support the crypto market.

Short-Term Risks for Bitcoin

According to Kendrick, Bitcoin currently has a strong correlation with Nasdaq, making it susceptible to fluctuations in the stock market. He warns that if Nasdaq continues to be liquidated, Bitcoin could drop to the threshold of $96,400 – a crucial price point for Bitcoin ETF funds.

Long-Term Expectations

Despite short-term pressure, some analysts believe Bitcoin may gradually resemble gold, becoming a more stable store of value in the future. However, currently, most investors still view Bitcoin as a speculative asset.

Conclusion

The DeepSeek event not only impacted the AI sector but also spread to the crypto market, causing the price of $BTC to plummet. This is clear evidence that crypto remains heavily influenced by external factors, especially from technology and politics. Investors need to be cautious of unpredictable fluctuations in the near future.#anhbacong