Key Highlights:
- The global crypto market cap plunges to $3.42 trillion after losing $212 billion in a single day.
- A disruptive Chinese AI app, DeepSeek, rattles U.S. tech stocks, dragging crypto markets down with it.
In a stunning turn of events Paradisers, the crypto market has shed over $212 billion in value in just 24 hours.
This 5.4% nosedive has left the global market cap reeling at $3.42 trillion, with Bitcoin struggling to hold the critical $100,000 support level. But here’s the kicker: this crash wasn’t just a crypto-specific catastrophe—it’s rooted in fears sparked by a Chinese AI app called DeepSeek that has shaken the U.S. tech sector to its core.
DeepSeek Sends Shockwaves Through U.S. and Crypto Markets
Meet DeepSeek, the Chinese AI app that just dethroned ChatGPT as the No. 1 free app on Apple’s App Store. Developed for under $10 million, DeepSeek has stunned the tech world, drawing sharp comparisons to ChatGPT’s jaw-dropping $157 billion valuation.
U.S. investors, already jittery about overvalued tech stocks, went into panic mode. The result? A widespread sell-off in the stock market that spilled over into crypto, triggering a chain reaction of massive losses.
Liquidations Hit Hard
The market downturn has triggered liquidations on a massive scale, with $613 million in positions wiped out in the last 24 hours. Long traders bore the brunt, losing $569 million. The biggest single liquidation? A jaw-dropping $98.46 million on the HTX exchange.
Bitcoin’s Battle for $100K
Bitcoin is facing its toughest fight yet, dropping 5% to hover precariously around $99,969. It briefly dipped to $99,902, alarming investors. Analysts are eyeing the $100K level as a critical support line; if breached, it could pave the way for further losses. Conversely, a recovery above $105,000 could reignite bullish sentiment.
Altcoins in Freefall
Altcoins are not faring any better. Ethereum, XRP, and Solana have nosedived by 8-10%, while meme coins like DOGE and SHIB are down 7-8%. Even popular tokens like PEPE and TRUMP have been battered, recording double-digit losses of nearly 13%.
What’s Next?
With fear gripping the markets, all eyes are on Bitcoin’s $100K support and the ongoing stock market volatility. As crypto and traditional markets remain intertwined, traders will need to navigate these turbulent waters strategically. Will Bitcoin reclaim its bullish momentum, or are we bracing for an extended downturn? Time will tell.
