Crypto Stocks Plunge In Market Rout

(MENAFN- Yolo Wire) Stocks associated with %Cryptocurrencies are down sharply to begin the trading week amid a global rout in equity markets and among digital assets.

Shares of stocks associated with crypto, such as %Coinbase Global (NASDAQ: $COIN) and %MicroStrategy (NASDAQ: $MSTR), are each down 5% on Jan. 27.

The stocks of %Bitcoin (CRYPTO: $BTC) miners that help to power artificial intelligence (A.I.) ventures are even lower, with shares of Core Scientific (NASDAQ: $CORZ) down nearly 20% on the day and Terawulf (NASDAQ: $WULF) down 13%.

The selloff in crypto stocks comes as the price of %Bitcoin (CRYPTO: $BTC) dropped below the key level of $100,000 U.S. amid a broad decline in technology stocks.

Bitcoin is down 5% and trading at $99,500 U.S. amid a market rout that has the technology-laden Nasdaq Composite index down 750 points or 3%.

The panic in equity markets has been sparked by the emergence Chinese A.I. model %DeepSeek , which was reportedly created in two months at a cost of only $6 million U.S.

The cheap cost of DeepSeek has raised concerns about the billions of dollars U.S. technology companies are spending to develop A.I. models and data centres.

Other cryptocurrencies are suffering steeper losses than Bitcoin, with %Solana (CRYPTO: $SOL), XRP (XRP) and %Dogecoin (CRYPTO: $DOGE) each down about 10%.

Accelerating the decline in crypto are leveraged traders covering their bullish call bets, say analysts.

Bitcoin has seen more than $250 million U.S. in liquidations over the past 24 hours as traders who bet that the price would continue rising are forced to sell their holdings to cover their losses.

A week ago, Bitcoin was trading at a record high of just over $109,000 U.S. per digital token.

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