Cryptocurrency Market Under Pressure Amid DeepSeek AI News

The cryptocurrency market is experiencing significant sell-off pressure following a market shakeout triggered by investor reactions to DeepSeek AI news. This downturn has led to massive liquidations, with total crypto liquidations over the past 24 hours surging by more than 850% as of January 27.

Liquidations Reach Nearly $1 Billion

According to recent data, nearly $1 billion in long and short positions were wiped out, with long positions accounting for over $883 million and short positions at about $110 million. At 2 pm ET, total liquidations stood at approximately $993 million. More than 344,000 crypto traders were liquidated over the past 24 hours, with the largest single liquidation order amounting to $98.46 million in BTC-USDT on the HTX exchange.

Cryptocurrency Liquidations Breakdown

Liquidations reached over $311 million for Bitcoin, more than $143 million for Ethereum, and nearly $50 million in Solana longs and shorts. XRP and Dogecoin accounted for $42 million and $33 million in liquidated positions respectively.

Market Impact

The nearly $1 billion in liquidated positions coincided with Bitcoinβ€˜s decline below $98,000 and Ethereumβ€˜s drop to $3,000. The total crypto market cap fell by 8%, settling at $3.3 trillion.

DeepSeek AI and Risk Assets Sell-Off

The sell-off in crypto assets occurred alongside broader declines in risk assets, triggered by market reactions to DeepSeek, an AI system developed in China. Analysts have noted that DeepSeek poses a threat to U.S. dominance in the AI sector. Reports suggest that the system was developed at a fraction of the cost of U.S.-based projects like OpenAI and is open-source.

As Deepseek challenges U.S. AI dominance, the question lingers: Will Trump step in as the market’s hero, or let risk assets fend for themselves?

Tips for Investors

  • Stay up-to-date with market news and trends to make informed investment decisions.
  • Diversify your portfolio to minimize risk.
  • Set clear investment goals and risk tolerance.

For more news and updates on the cryptocurrency market, visit Global Crypto News.