Ah, the sweet smell of panic in the air! On January 27, Bitcoin decided to drop 6% faster than I can drop my New Year’s resolutions. All thanks to the debut of China’s open-source AI model, which Marc Andreessen has dubbed “AI’s Sputnik moment.” I mean, who doesn’t love a good space race? 🚀
DeepSeek, the new kid on the block, sent US markets into a tizzy with news that it could whip up a competitor to American AI firms like OpenAI for a mere $6 million. That’s right, folks! Less than the cost of a decent wedding. 💍
Tech stocks took a beating, and the “Magnificent Seven” — Apple, Nvidia, Tesla, Microsoft, Amazon, Meta, and Alphabet (Google) — all saw losses. Nvidia even broke a Wall Street record by plummeting nearly 17% in one day. Talk about a dramatic fall from grace! 📉
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Crypto market maker Wintermute noted, “Whilst crypto is void of near-term narratives, correlations are driving flows and de-risking is flagged.” In layman’s terms: investors got spooked and sold off. 🏃♂️💨
The correlation between Bitcoin and stock prices has been studied for ages, and it seems it’s here to stay. An investor note from BitMEX indicated that this correlation is one of the most reliable market dynamics. Who knew reliability could be so boring? 😴
“The strong correlation between bitcoin and equities, especially in the current quarter, remains one of the most reliable market dynamics.”
Prices have started to stabilize, but crypto mining stocks are still feeling a bit queasy. It’s like watching your friend recover from a hangover — slow and painful. 🍹
While the quick recovery is little consolation for traders who saw their long positions liquidated, some analysts remain optimistic. Because why not? 🤷♀️
Recent: John McAfee AI token adds surprise chapter to his crypto story
Andre Dragosch, European head of research at Bitwise, tweeted that “the fact that Bitcoin stabilized while the Nasdaq continued to slide is extremely bullish.” So, there’s that! 📈
Many believe that cheaper AI like DeepSeek will have long-term benefits. Because who doesn’t love a good bargain? 🛒
DeepSeek Means Cheaper AI, with Little Effect on Bitcoin Price
Tech experts quickly noted that
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2025-01-30 20:54