The emergence of a Chinese AI disruptor rattles crypto and tech markets.
Bitcoin briefly drops below $100,000
Bitcoin fell as much as 6.5% on Monday, marking its sharpest drop since December. It recovered slightly to $101,500 later in the day. Bitcoin fell below $100K amid AI-triggered market fears. Crypto’s correlation with tech grows, highlighting Trump’s crypto policy.Other cryptocurrencies also declined, with XRP dropping 14% and Solana losing 11% before both regained some ground.
AI disruptor DeepSeek sparks market selloff
A Chinese AI model, DeepSeek, created panic in equity markets. Its potential disruption spilled over into cryptocurrency trading. Bitcoin has shown an increasing correlation with tech stocks this year, reflecting mutual market movements influenced by major events.
Trump’s crypto order fails to excite traders
President Trump’s executive order on crypto regulation proposed a working group but did not confirm plans for a Bitcoin stockpile.
Market expectations already priced in
“Even though the market got 90% of what it wanted with the executive orders, it evidently was mostly priced in,” said Sean McNulty of FalconX. Trump’s recent memecoin launches, including the TRUMP token, contributed to the uncertainty. TRUMP dropped 6% on Monday.
Investors anticipate further volatility
Analysts are watching the US response to Chinese AI advancements and whether new regulations will impact crypto’s momentum. Bitcoin’s resilience after the selloff signals ongoing investor confidence amid broader market fluctuatio
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