Odaily News QCP Capital released its daily market watch, saying that DeepSeek is still at the top of the App Store rankings. Its latest AI version caused a huge response on Wall Street and risk asset markets yesterday, with the Nasdaq index falling 3% and NVIDIA plummeting by a staggering 17%. The AI craze in 2024 pushed the Nasdaq's valuation to unsustainable levels, trading at a price-to-earnings ratio of nearly 27 times. However, 2025 faces a series of new challenges, including uncertainty about the Fed's rate hike path, the impact of Trump's policies, and the upcoming technology company earnings reports this week, which may bring downside risks to risk assets.
Crypto-related stocks were not immune, with Core Scientific plunging 29% and mining companies like Hut8, RiotPlatforms and Cipher Mining also falling. The decline reflects their increasing integration with AI, as many companies are repurposing mining farms as data centers for high-performance computing. The trend seems to be driven more by risk aversion than crypto-specific factors. Bitcoin (BTC) has found support and stabilized above $102,000, with more call options than put options. This week may test whether BTC's correlation with the stock market weakens, especially if a favorable regulatory environment provides potential support.
Crypto-related stocks were not immune, with Core Scientific plunging 29% and mining companies like Hut 8, Riot Platforms and Cipher Mining also falling. The decline reflects their increasing integration with AI, as many companies are remodeling mining farms into data centers for high-performance computing.
The trend appears to be driven more by risk aversion than crypto-specific factors. Bitcoin (BTC) has found support and stabilized above $102,000, with more call options than put options. This week may test whether BTC's correlation with the stock market weakens, especially if a favorable regulatory environment provides potential support.