TL;DR

  • Bitcoin has fallen below $100,000 amidst a broader market selloff, reflecting a 4% decline in a day as tech stocks struggle.
  • The cryptocurrency market is experiencing a 5.5% drop in total valuation, with concern rising over competition from new AI models.
  • Despite current market conditions, some Bitcoin supporters remain optimistic, viewing this as a momentary setback and advocating for long-term value storage in cryptocurrency.

Bitcoin has lost the $100,000 support on Tuesday, falling alongside tech stocks in a market-wide selloff in the U.S.

The apex cryptocurrency traded at $99,849 at the time of writing, down over 4% in the past 24 hours.

The fall doesn’t come as a surprise amind a bloodbath at the markets with S&P 500 down 1.6% and tech-heavy Nasdaq 100 down a whopping 3.1%.

DeepSeek, a model made by an obscure Chinese startup, is making waves as its reasoning model R1 rivals OpenAI’s o1, while being developed at a fraction of the costs and with less-advanced chips.

The success of the Chinese company is sparking worries that U.S. counterparts could be left behind in the race but also that some of the biggest beneficiaries of the AI boom led by Nvidia — could be in for a reality-check on how much revenues they actually stand to gain.

Bitcoin and cryptocurrencies don’t have a direct relation to the DeepSeek concerns but that a large portion of cryptocurrency trading at this time is speculative isn’t exactly a secret.

It is given for the cryptocurrency market to react to woes in the stock market. The overall cryptocurrency market valuation has fallen by 5.5% over 24 hours to $3.4 trillion and other minor cryptocurrencies are taking a bigger beating, with Solana down over 10.7%.

Yet, this conjoined fall isn’t enough to dishearten Bitcoin backers.

‘Stack Hodler,’ an anonymous Bitcoin bull on X, says that this is a temporary setback and if anything, such incidents only highlight why the apex cryptocurrency is bound to emerge victorious in the long-run as a store of wealth.

“We are headed into an era of unprecedented technological innovation. And businesses that look like sure winners one day WILL end up being disrupted overnight. Storing your value in equities will end up being a more and more dangerous game.”

“This Deepseek shock should serve as a wake up call to anyone who is planning on storing their life’s savings in equities over the next decade.”

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