DeepSeek Coin Impact: Bitcoin Hits 11-Day Low

The cryptocurrency market has witnessed a significant downturn, with Bitcoin falling to an 11-day low of $98,852.17, attributed to the rising popularity of DeepSeek, a Chinese artificial intelligence model that rivals OpenAI's ChatGPT and Meta's Llama 3.1.

The decline in Bitcoin's value is accompanied by a drop in technology stocks, with Nvidia shares plummeting 17% on Monday, shedding $600 billion in value. DeepSeek's AI model has raised concerns about data privacy, as it stores user data on servers in China, and has sparked worries that it could threaten Western companies' dominance in the sector. The model's performance has generated significant interest, with its AI app available on Apple's App Store and online.

Experts are divided about DeepSeek's potential for widespread adoption, with some praising its performance and others expressing skepticism. Analysts at Wedbush Securities and Bernstein Research believe that the drop in stock prices is likely an overreaction, as the demand for AI will continue to drive growth in the sector. However, prominent crypto trader Arthur Hayes predicts a coming "financial crisis" that could lead to a $70,000 to $75,000 price correction for bitcoin.

The market is experiencing a "risk-off" sentiment, with the Federal Reserve expected to keep interest rates unchanged. However, President Trump has urged for a decrease in rates, which could trigger more government spending and increase inflation. The White House has yet to comment on the development, but President Trump has expressed concerns about the potential impact of Chinese AI on the US.

As the market continues to fluctuate, investors are advised to exercise caution, with the potential for further declines in cryptocurrency and technology stocks. The rise of DeepSeek and its impact on the market will be closely watched, as the world waits to see how this new AI model will shape the future of the tech industry.