Why is crypto crashing right now?
$BTC is down by 5%, and major altcoins have dropped 8-10%, with the market feeling shaky. However, this isn’t just a crypto issue—it’s tied to a broader stock market sell-off. Here’s why.
Panic Triggered by DeepSeek
The panic started in the US stock market due to a Chinese AI startup called DeepSeek. This company, which competes with ChatGPT, reportedly built its platform for less than $10 million, a fraction of OpenAI’s investment.
DeepSeek Overtakes ChatGPT
Today, DeepSeek became the top free app on the App Store, surpassing ChatGPT. This unexpected rise caught investors off guard and raised concerns about the valuations of AI companies, especially OpenAI.
A Massive Valuation Gap
• ChatGPT: $157 billion
• DeepSeek: Just 0.2% of thatat
This disparity has raised doubts about whether AI stocks, particularly those like OpenAI, are overvalued, leading to a sell-off in the stock market.
Crypto Follows the Stock Market
As stock prices drop, crypto often follows. That’s why $BTC BTC and altcoins are also seeing losses now. The market tends to overreact to sudden news, creating volatility.
If you’ve been in crypto for a while, you know that panic selling rarely ends well. The market will likely settle, and it’s important to stay calm and focus on the long-term picture.
