Bitcoin experiences significant drop
Date
1/30/2025 3:20:10 AM
(MENAFN) Bitcoin has experienced a significant drop, falling below $100,000, triggering concerns among cryptocurrency investors. This decline is part of a broader sell-off in technology stocks, which followed the introduction of a new AI model by Chinese startup DeepSick. The model has raised challenges to U.S. dominance in the AI sector, causing notable losses in the market value of companies like Nvidia. While Bitcoin's price is not directly impacted by DeepSick's AI model, it often shows a correlation with tech stocks, particularly indices like the Nasdaq Composite. Analysts suggest that significant shifts in the technology sector can influence Bitcoin’s price movements.
On January 20, DeepSick unveiled its open-source AI model, DeepSick R1, designed to compete with American models like ChatGPT in the realm of conversational AI that generates human-like texts. At the time of writing, Bitcoin was trading around $102,144 according to CoinMarketCap. However, the ongoing decline in Bitcoin's price seems to be more driven by market sentiment surrounding DeepSick’s launch rather than issues with Bitcoin itself.
Nigel Green, CEO of Dever Group, emphasized that Bitcoin’s volatility requires a strategic approach, not panic. He noted that such downturns present opportunities for forward-thinking investors, as Bitcoin continues to hold strong fundamentals. Green highlighted that long-term institutional investors are not deterred by short-term price drops, viewing Bitcoin as a strategic asset for diversifying risks and hedging against inflation. He pointed out that past Bitcoin crashes, such as the 2017-2018 ICO collapse and the 2022 drop, ultimately led to recoveries, with Bitcoin bouncing back from lows of $3,500 in 2018 and $16,000 in 2022 to reach new highs later on.
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