The launch of the Chinese model “DeepSeek R1” caused turmoil in the cryptocurrency market, as it raised investor concerns about the impact of its low cost on established companies.
Shares of “Nvidia” fell by 8.5%, and cryptocurrencies were affected, as Bitcoin fell to an 11-day low.
AI coins suffered significant losses, most notably the “DOGEAI” coin, which lost 45%, and the “EMP” coin, which fell from $189 to $132 before rebounding to $144.83.
The price of the “HENLO” coin also fell by 20% during the day, while “NEAR” fell by 11.1% and “ICP” by 8.5%.
Overall, AI-themed coins lost 13.3% of their market value in 24 hours, reaching $36.2 billion.
The Chinese model DeepSeek R1, features advanced artificial intelligence capabilities and comes at a low cost compared to other companies, which has increased pressure on competitors.
