QCP: Cryptocurrency-related stocks fell under the influence of DeepSeek, reflecting the deepening connection between cryptocurrency companies and AI
ChainCatcher news, QCP released a daily market observation stating that DeepSeek remains at the top of the App Store rankings. Its latest AI version caused a huge stir on Wall Street and in the risk asset market yesterday, with the Nasdaq index dropping by 3%, and NVIDIA plummeting by an astonishing 17%. The AI frenzy of 2024 has pushed the Nasdaq's valuation to unsustainable levels, with a price-to-earnings ratio close to 27 times during trading. However, 2025 faces a series of new challenges, including uncertainty in the Federal Reserve's interest rate path, the impact of Trump’s policies, and the upcoming earnings reports from tech companies this week, which may pose downside risks for risk assets.Crypto-related stocks were not spared, with Core Scientific's stock price plummeting by 29%, and mining companies like Hut 8, Riot Platforms, and Cipher Mining also experiencing declines. This drop reflects their increasing integration with AI, as many companies are transforming their mining facilities into high-performance computing data centers.This trend seems to be driven more by risk-averse sentiment rather than specific crypto factors. Bitcoin (BTC) has found support and stabilized above $102,000, with more call options than put options currently. This week may test whether the correlation between BTC and the stock market has weakened, especially if a favorable regulatory environment provides potential support.