#DeepSeekImpact Bitcoin and altcoins recover from DeepSeek shock to AI, crypto
Bitcoin and cryptocurrency market capitalization recover, back above $3.614 trillion on Tuesday. DeepSeek jolted the crypto and AI market over the weekend, triggering a sell-off in major US tech stocks on Monday. AI category of crypto tokens, Internet Computer Protocol, Bittensor and Akash Network, recovered in the past 24 hours. Bitcoin (BTC), Artificial Intelligence (AI) category of crypto tokens and United States (US) tech stocks corrected on Tuesday as traders digested the future implications of China’s DeepSeek release. DeepSeek app was the most downloaded free app on Apple’s US App Store over the weekend of its launch.
The AI chatbot set its sights on the competition, US-based OpenAI’s ChatGPT and its latest releases, ushering a correction in tokens within the Artificial Intelligence category.
Experts highlight two key concerns that catalyzed a crypto bloodbath: the $6 million investment and short timeframe of DeepSeek’s build, and the fact that it has been released as an open source.
Even as OpenAI boss Sam Altman’s Humanity Protocol recently closed a $20 million funding round and raised its valuation to $1.1 billion, its Worldcoin (WLD) token erased over 8% value on Tuesday and noted over 21% decline in the past month.
Bitcoin and AI tokens eye recovery in the aftermath of DeepSeek release Bitcoin slipped on Monday to a low of $97,777 for the first time since mid-January 2025 as crypto traders digested the news of China’s $6 million open-source AI chatbot rollout. Bitcoin’s market capitalization is back above $2.02 trillion and BTC added nearly 2.5% to its value in the past 24 hours.
Although AI coins’ market capitalization erased 8% in the last 24 hours, the metric hovered above $37 billion on Tuesday. Three of the top five AI tokens recovered from the correction in the past 24 hours, according to CoinGecko data.
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