Cryptocurrencies Fall Amid Risk Aversion Fueled by Chinese AI Model
Amidst a broader selloff in riskier assets, Bitcoin (BTC-USD) and other cryptocurrencies experienced a sharp decline on Monday.
Key Points:
* BTC-USD dropped by 6.5%, mirroring a decline across US stock markets.
* Smaller tokens, such as XRP and Solana, faced even greater losses.
* Investors were concerned about the potential impact of DeepSeek, a Chinese AI model, on technology valuations.
Market Reaction:
* Crypto traders shrugged off President Trump's recent executive order supporting the industry.
* The order, which stopped short of establishing a Bitcoin reserve, was largely priced in by the market.
* The digital-asset market had initially risen after the order but has since taken a breather.
Impact of Trump's Embracing of Crypto:
* Trump's转变 stance on cryptocurrencies attracted industry support through political donations.
* He has pledged to make the US a global crypto hub.
Current Market Situation:
* Bitcoin traded at $99,200 as of 10 a.m. London time.
* Asian stocks rose on Monday, despite concerns over trade war fears.
* DeepSeek's potential impact on the tech sector has led to a risk-off sentiment in crypto markets.