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DeepSeek AI Disruption Hits Crypto Mining Stocks Hardest
The crypto mining industry is in a state of panic as the sudden rise of DeepSeek’s artificial intelligence (AI) model has sent shockwaves through the market. As a result, stocks related to Bitcoin miners and other crypto-related assets have plummeted.
For two consecutive days, these stocks faced significant losses, with major players such as Riot Platforms (RIOT), Cleanspark (CLSK), Cipher Mining (CIFR), MARA Holdings (MARA) taking a beating. This unprecedented drop in value is being attributed to the sudden and unexpected disruption caused by DeepSeek’s AI services.
DeepSeek’s offering of low-cost AI solutions has sparked concerns about market overvaluation, leading investors to reevaluate their investments. As the tech industry continues to shift towards the dominance of AI, crypto-related stocks are struggling as a result.
Riot Platforms, Cleanspark, Cipher Mining, and MARA Holdings have all seen significant drops in value, with some falling by as much as 5-10%. Coinbase’s shares have also taken a hit, down by 10%, while MicroStrategy, the largest corporate holder of Bitcoin, has witnessed an 8.5% decline.
The reason behind this unprecedented drop lies not only in DeepSeek’s AI model but also in its ability to offer services at significantly lower prices than its competitors. This price war has sent shockwaves through the industry as analysts struggle to reconcile the sudden and unexpected disruption caused by DeepSeek’s services.
Bitcoin miners who have been struggling since Bitcoin’s fourth halving in April 2024 are now facing an existential crisis, forced to diversify their operations beyond mining, venturing into AI and high-performance computing. CORZ is one example of this, having recently signed a deal with CoreWeave for a 12-year period.
The integration of DeepSeek’s AI model into crypto AI projects is only a matter of time, making investors increasingly wary about the long-term viability of Bitcoin mining stocks.
AI-related crypto tokens are also feeling the pressure as their total market capitalization has dropped by 5.11% in the last 24 hours, bringing it to $42.33 billion. This loss is led by Venice Token (VVV), a new project claiming private access to DeepSeek’s AI model, which fell by an astonishing 20.29%. Virtuals Protocol (VIRTUALS) also suffered a significant decline of 11.75%.
In conclusion, the crypto mining stocks have been hit hardest due to the sudden and unexpected disruption caused by DeepSeek’s AI services.
Source: coinpedia.org
