TechFlow reports, QCP released its daily market watch stating that DeepSeek continues to dominate the App Store rankings. Its latest AI product triggered tremors across Wall Street and risk assets yesterday, sending the Nasdaq down 3% and NVIDIA's stock plummeting a staggering 17%.
The AI frenzy of 2024 pushed Nasdaq valuations to unsustainable levels, with forward price-to-earnings ratios nearing 27x. However, 2025 presents new challenges to this narrative, as uncertainty surrounding the Fed's rate path, Trump's policies, and upcoming tech earnings this week could pose downside risks to risk assets.
Cryptocurrency-related equities were not spared either, with Core Scientific plunging 29%, while mining firms Hut 8, Riot Platforms, and Cipher Mining also saw declines. This sell-off reflects their growing convergence with AI, as many miners are repurposing mining facilities into advanced high-performance computing data centers.
This trend appears driven more by risk-averse sentiment than crypto-specific factors. Since our last update, Bitcoin has found support and stabilized above $102,000, with options markets skewed bullish. This week will test whether Bitcoin's correlation with equities is weakening, especially amid a potentially supportive regulatory environment.
