DeepSeek! DeepSeek! And DeepSeek Again!
It seems that this technological creation is not only burning up Asian stocks, weighing on stocks of companies in the microelectronics sector, but also scorching crypto stocks!
On Monday, a report from Bloomberg recorded a fall in crypto stocks with mining companies such as Core Scientific falling 29%, and their peers such as Hut 8, Riot Platforms, and Cipher Mining also falling in line.
The reason? With DeepSeek, investors are starting to rethink the future of AI and the reliance on crypto mining for computing power.
Coinbase and BTCS stocks also recorded declines of 6.6% and 13%, respectively, as the market shifted away from higher-risk assets.
With this new AI model posing a serious challenge to the large investments made by AI firms in crypto-backed data centers, traders are now forced to reevaluate their strategies.
Bitcoin itself fell 3%, trading around $102,000, with Ether and Solana also affected.
With the AI revolution heating up, crypto miners may be left behind in the race for computing power.
Will the future of crypto be abandoned or will miners be able to adapt quickly enough to reclaim their share?
