PANews reported on January 28 that according to QCP Capital analysis, the release of DeepSeek's latest AI product continues to dominate the market, and its impact has spread to Wall Street and risky assets. Yesterday, the Nasdaq index closed down 3%, and NVIDIA plummeted 17%. The AI boom in 2024 once pushed the Nasdaq valuation to a high of nearly 27 times the forward price-to-earnings ratio, but in 2025, it will face new challenges such as the Fed's interest rate path, policy uncertainty, and this week's technology stock earnings reports, which may intensify the downward pressure on risky assets.
Crypto-related stocks were not immune, with Core Scientific plunging 29%, and mining companies such as Hut 8, Riot Platforms and Cipher Mining also falling sharply, reflecting their increasing integration with AI. Many mining companies are transforming their facilities into high-performance computing data centers, and the decline is more due to risk aversion than crypto-specific factors.
Bitcoin is currently stable above $102,000, and market sentiment favors bullish options. This week will test whether Bitcoin's correlation with the stock market has weakened, especially in a potentially favorable regulatory environment, which may provide support for it.
