- Bitcoin and cryptocurrency market capitalization recover, back above $3.614 trillion on Tuesday.
- DeepSeek jolted the crypto and AI market over the weekend, triggering a sell-off in major US tech stocks on Monday.
- AI category of crypto tokens, Internet Computer Protocol, Bittensor and Akash Network, recovered in the past 24 hours.
Bitcoin (BTC), Artificial Intelligence (AI) category of crypto tokens and United States (US) tech stocks corrected on Tuesday as traders digested the future implications of China’s DeepSeek release. DeepSeek app was the most downloaded free app on Apple’s US App Store over the weekend of its launch.
The AI chatbot set its sights on the competition, US-based OpenAI’s ChatGPT and its latest releases, ushering a correction in tokens within the Artificial Intelligence category.
Experts highlight two key concerns that catalyzed a crypto bloodbath: the $6 million investment and short timeframe of DeepSeek’s build, and the fact that it has been released as an open source.
Even as OpenAI boss Sam Altman’s Humanity Protocol recently closed a $20 million funding round and raised its valuation to $1.1 billion, its Worldcoin (WLD) token erased over 8% value on Tuesday and noted over 21% decline in the past month.
Bitcoin and AI tokens eye recovery in the aftermath of DeepSeek release
Bitcoin slipped on Monday to a low of $97,777 for the first time since mid-January 2025 as crypto traders digested the news of China’s $6 million open-source AI chatbot rollout. Bitcoin’s market capitalization is back above $2.02 trillion and BTC added nearly 2.5% to its value in the past 24 hours.
Although AI coins’ market capitalization erased 8% in the last 24 hours, the metric hovered above $37 billion on Tuesday. Three of the top five AI tokens recovered from the correction in the past 24 hours, according to CoinGecko data.
Top 5 AI tokens on CoinGecko
Experts comment on DeepSeek’s reality check to Bitcoin, tech stocks
Kevin Surace, CEO of Appvance, told FXStreet in an exclusive interview:
"Deepseek R1 took only two months and less than $6 million to build and it is outperforming almost all other models which took billions to build. This is mind-blowing to everyone who has developed the current best-in-class models. And it is challenging us today. This is a state-of-the-art model that outperforms years of effort in the US. Any China-backed model provides an unfair advantage. But at a total cost of only $6M, the advantage here isn’t that the government helped to fund it. It’s that the model is so good for being created in months at a thousandth of the cost of the major players. That is mind-blowing."
Surace identifies the low cost of training the Large Language Model (LLM) as one of the key reasons for its popularity.
Forest Bai, Co-founder of Foresight Ventures, shared insights on the stock fund behind the release of DeepSeek:
"A quantitative stock fund in China has released one of the most powerful large language models in the world. However, this quant company is not the best-performing quantitative fund in the Chinese stock market, and its returns were negative during 2022-2023.
It goes to show just how challenging it is to navigate China's stock market. And it was just an example of how even a good company is hard to receive positive feedback in the Chinese stock market. DeepSeek R1 is a versatile and accurate AI model however it has limitations such as a knowledge cutoff, potential biases, and challenges with long-context conversations."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks

Crypto Today: BNB, OKB, BGB tokens rally as BTC, Shiba Inu and Chainlink lead market rebound
Cryptocurrencies sector rose by 0.13% in early European trading on Friday, adding $352 million in aggregate valuation. With BNB, OKB and BGB attracting demand amid intense market volatility, the exchange-based native tokens sector added $1.9 billion.

US SEC may declare XRP a 'commodity' as Ripple settlement talks begins
The US SEC is considering declaring XRP as a commodity in the ongoing settlement talks with Ripple Labs. FOX News reports suggest Ethereum's regulatory status remains a key reference for XRP’s litigation verdict.

Cardano Price Prediction: ADA could hit $0.50 despite high probability of US Fed rate pause
Cardano price stabilized above $0.70 after posting another 5% decline in its 3rd consecutive losing day. Multiple ADA derivatives trading signals are leaning bullish, but the US trade war impact outweighs the positive shift in inflation indices.

Stablecoin regulatory bill receives green light during Banking Committee hearing
The US Senate Banking Committee voted on Thursday to advance the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which aims to establish proper regulations for stablecoin payments in the country.

Bitcoin: BTC at risk of $75,000 reversal as Trump’s trade war overshadows US easing inflation
Bitcoin price remained constrained within a tight 8% channel between $76,000 and $84,472 this week. With conflicting market catalysts preventing prolonged directional swings, here are key factors that moved BTC prices this week, as well as key indicators to watch in the weeks ahead.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.