In the last 24 hours, the crypto market has received a major blow and suffered a significant depreciation with a loss of $ 920 billion. This decline is directly linked to the sales wave in the technology sector, the effects of Deepseek, a Chinese -based AI model, and the interest policies of the US Federal Reserve (FED).
Why did technology and crypto markets fell hard?
The Chinese initiative Deepseek’s launch of the open -source artificial intelligence model has aggravated competition in the technology sector and caused great losses in US technology shares. This has also led to a large -scale decrease in the crypto currency market, which usually moves in parallel with technology shares.
Bitcoin has fallen below $ 100,000 and saw the lowest level of the last 11 days. Large crypto currencies such as Ethereum, Ripple, Solana and Dogecoin have also depreciated. Analysts point out that Bitcoin’s high correlation with Nasdaq 100 accelerates this decrease.
Effect of FED policies on crypto
Market sensitivity is largely affected by expectations of the US Federal Reserve’s interest rate policies. The expectation that the Fed would keep interest rates high for a long time caused more losses in the market by reducing the risk appetite. Historically, the Fed’s strict monetary policies have reduced the demand for high -risk assets classes.
It is clear that these decreases are combined with the increase in competition in the technology sector and the change in the US monetary policies and trigger major losses in the crypto market.
Future of crypto market: difficulties and opportunities
Important developments are expected for the crypto market in the coming days. While the US Federal Bank’s first FOMC (Federal Open Market Committee) meeting is approaching, interest rates will play a decisive role on the crypto market. Higher interest rates may deterrence to take risks and delay the market recovery.
However, the crypto market tended to recover after major decreases in the past. For example, in 2014, MT.Gox collapse reduced the price of Bitcoin by 36 %, but the market recovered over time. Similarly, the Terra/Luna collapse in 2022 caused Bitcoin to drop from 50 %to $ 40,000 to $ 20,000, but in 2023, the market gained strength again with the increase in the decentralized finance and corporate adoption.
Long -term expectations
The crypto market may be difficult to recover in the short term, but the long -term appearance is still in the direction of growth. Innovations, increasing ratios for adoption and the development of financial integration continue to be the main factors that support the market.
While the future of the digital asset market is shaped by the speed of innovation and regulatory frames, investors should be more careful in this uncertain environment and focus on long -term opportunities.
