DeepSeek's impact on crypto is multifaceted. On one hand, the emergence of DeepSeek AI could benefit risk assets like Bitcoin, as its low-cost nature may help reduce inflation, potentially favoring non-AI-linked assets ¹. This could lead to a rebound in Bitcoin prices, with some analysts predicting a rise above $105,000.
On the other hand, DeepSeek's disruption of the AI sector has triggered concerns on Wall Street, leading to declines in tech stocks, which have historically correlated with Bitcoin and other cryptocurrencies ². This has resulted in a downturn in the cryptocurrency market, with Bitcoin briefly falling below $100,000.
