#DeepSeekImpact IMPACT OF DEEP SEEK TOOL ON CRYPTO MARKET !

The recent advancements by DeepSeek, a Chinese artificial intelligence company, have significantly influenced the cryptocurrency market. On January 27, 2025, Bitcoin's price briefly dipped below $100,000, reaching an 11-day low. This decline was part of a broader tech selloff triggered by DeepSeek's announcement of a highly advanced AI model developed at a fraction of the cost compared to its Western counterparts. Despite DeepSeek's developments being unrelated to Bitcoin, the news affected broader investor sentiment, emphasizing the correlation between Bitcoin and tech stocks.

DeepSeek's AI model, launched in December 2024, boasts 671 billion parameters and was trained in approximately 55 days at a cost of around $5.58 million. This efficiency has raised concerns among investors about the competitive landscape in AI technology, leading to a selloff in tech stocks and impacting cryptocurrencies.

The incident underscores the interconnectedness of the tech and crypto markets, where developments in one sector can have ripple effects across the other. Investors are advised to monitor advancements in AI technology, as they can influence market dynamics and investment strategies in the cryptocurrency space.