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Bitcoin (BTC-USD) and other cryptocurrencies took a sharp dip on Monday as the emergence of a new Chinese artificial intelligence (AI) model caused a global selloff in riskier assets. Bitcoin dropped by as much as 6.5% during the morning in London, marking its largest intraday loss since December 6. Other smaller cryptocurrencies like XRP and Solana saw even bigger losses, with XRP falling by 9% and Solana following a similar sudden drop in the crypto market came as a reaction to the development of a new AI model by Chinese startup DeepSeek, which is being seen as a serious challenge to U.S. tech companies. The fears surrounding this Chinese AI model have spread across global markets, causing weakness not just in crypto but also in stocks, particularly in tech is DeepSeek's AI model impacting global markets?The sharp drop in Bitcoin and other cryptocurrencies is largely attributed to the concerns over DeepSeek’s new AI model. This AI model, which is being described as cost-efficient and groundbreaking, has created anxiety among investors. The primary worry is that it could disrupt the dominance of U.S. tech companies in the AI space, particularly in the areas of large language models (LLMs) and other advanced AI technologies.
