Asian tech stocks began to fall after news of a Chinese startup launching a free AI model called DeepSeek, a competitor to ChatGPT. Crypto also fell, with Bitcoin and smaller tokens falling along with US stock futures.
Asian tech stocks began to fall after news of a Chinese startup launching a free AI model called DeepSeek, a competitor to ChatGPT. Crypto also fell, with Bitcoin and smaller tokens falling along with US stock futures.
The price of bitcoin fell 6,5% Monday morning in London, to below $100,000, its biggest intraday drop since Dec. 6, Bloomberg reported .
Smaller tokens suffered even greater losses:
The decline in cryptocurrencies reflected weakness in most stock markets, and US technology futures fell sharply.
According to a report by QCP Asia, Chinese LLMs pose a potential threat to US stock markets, disrupting the dominance of US AI due to their cost-effectiveness and innovative open-source technology. «The question now is how will Trump respond?» the document states.
The cryptocurrency slump prompted Donald Trump to order the creation of a task force to advise the White House on cryptocurrency policy in a long-awaited executive action issued on Friday, January 24. According to the document, the group’s experts must propose a regulatory framework for digital assets in the United States within 6 months.
«While the market got 90% of what it wanted from the executive orders, it was clearly mostly factored in,» said Sean McNulty, head of APAC derivatives at FalconX. He added that this was true for everything except the Bitcoin Reserve, «which immediately started buying BTC, which was a bit disappointing.»
