Cryptocurrencies, particularly Bitcoin, have experienced a sharp decline following the introduction of a new artificial intelligence model from China, triggering a global sell-off of risky assets.

According to Bloomberg reports, Bitcoin dropped by 6.5% on Monday morning in London, marking its largest single-day fall since December 6. Other tokens like XRP and Solana suffered even greater losses, falling by 9% each.

This downturn reflects weakness across most stock markets, especially a sharp decline in futures for American tech stocks.

Crypto traders have shown minimal reaction to an executive order from Donald Trump supporting the industry, signed last week upon his return to the White House. Some experts believe this development was already priced in. However, concerns that the AI model from the Chinese startup DeepSeek could impact valuations of tech companies added pessimism to the crypto market on Monday.

As of 14:20 in Kyiv, Bitcoin was trading around $99150.

Reminder:

On January 20, Bitcoin reached an all-time high of $109007 as of 09:06 on that Monday.

The Chinese startup DeepSeek, focused on AI development, caused a global sell-off of tech stocks, questioning America's tech dominance.