Bitcoin's Price Takes a Dive

On Monday, Bitcoin experienced a significant drop, falling below the $100,000 mark, a stark contrast to its recent all-time high of nearly $110,000. This downturn is largely attributed to the growing influence of the Chinese AI application, DeepSeek, on global markets.

DeepSeek's Rise to Prominence

DeepSeek, a Chinese AI startup, has recently made headlines by climbing to the top of Apple's App Store rankings in the US with its R1 model. Launched on January 20, R1 poses a challenge to Silicon Valley's dominance by delivering competitive performance at a fraction of the cost.

Market Reaction

At 2:52 am ET, Bitcoin was down 3.26%, trading at $99,207.81. Ethereum also saw a decline, dropping 4.74% to $3,078. The market's reaction underscores the significant impact of DeepSeek's emergence on the cryptocurrency landscape.