DeepSeek’s rise, Bitcoin’s fall: More volatility ahead for world’s largest cryptocurrency?

Bitcoin’s recent plunge below $100,000 sparked concerns among crypto investors. The decline, which was part of a broader tech stocks’ sell-off triggered by Chinese startup DeepSeek’s AI model challenging the US dominance in AI, also had enterprises such as Nvidia losing substantial market value.

Even as Bitcoin is not directly related to DeepSeek’s AI model, its price movement is often linked to tech stocks with analysts point out a significant correlation between indices such as the Nasdaq Composite and Bitcoin, indicating that big movements in tech sector may have an impact on Bitcoin’s price.