With the market cooling after hitting a new high and being forced down by the DeepSeek-driven sell-off in tech companies, cryptocurrencies fell at the start of the last week of January.
The price of bitcoin dropped 3% to $101,041.42. It had previously dropped to $97,750.00.
The overall cryptocurrency market fell by around 6%.
Early in the day, Nasdaq futures were down over 3%. Coinbase and MicroStrategy’s stock dropped almost 2% each during premarket trading. Deeper cuts hit bitcoin miners who fuel AI initiatives.
While Iren, formerly known as Iris Energy, sank 10% and Terawulf lost 8%, Core Scientific fell 18.5%. The collapse of tech equities put pressure on cryptocurrency.
Concerns regarding big tech’s expenditures on AI models and data centres as well as the U.S.’s hegemony in the field were raised when the Chinese startup DeepSeek claimed that it might have produced a competitive AI model for a fraction of the price.
Source (CNBC)
