Deepseek kills US stocks! NVIDIA big dump 17% "Market Cap evaporates $600 billion", BTC breaks through $98,000 and then rebounds

The Open Source inference model R1 launched by DeepSeek has raised concerns about the valuation of large AI tech stocks in the market, leading to a significant slump in the US stock market. NVIDIA's stock price experienced a big dump of 17%, evaporating nearly $600 billion in Market Cap, setting a new record for the largest single-day Market Cap evaporation in US stock market history. BTC was also impacted, falling below $98,000 at one point yesterday. (Recap: BTC fell below $101,000, causing '190,000 people to get liquidated with $520 million.' Experts believe market differentiation is intensifying, and retail money is dumping.) (Background: Zuckerberg warns that Chinese AI models like DeepSeek are too powerful, and US companies and government should block them completely.) Chinese startup DeepSeek unveiled the Open Source inference model R1 on the 20th, with performance comparable to OpenAI's o1, but training costs claimed to be less than $6 million, about 5% of GPT-4o, and query costs 98% lower than OpenAI. This news quickly sparked discussions over the weekend, triggering investor panic at the start of the new week, leading to significant price drops in the market. DeepSeek's demonstration of the ability to build high-performance models with less investment has prompted investors to reassess the valuations of large tech stocks supported by hundreds of billions of dollars in AI investments. The market also questions whether these massive investments can bring sufficient profit returns. With DeepSeek's rise, concerns about the AI stock bubble bursting have intensified among investors, and panic quickly spread to the tech stock zone. NVIDIA's Market Cap evaporated nearly $600 billion to a record high. Tech stocks in the AI sector were hit hardest, with NVIDIA's stock price plummeting by almost 17%, evaporating $589 billion in Market Cap, marking the largest single-day evaporation in US stock market history and becoming the biggest victim of this downturn. Other tech stocks were not spared, with TSMC ADR plummeting over 13%, Broadcom falling by 17.4%, Micron Technology and AMD both sliding by 6.4%. The major US stock indices generally closed lower, with the Philadelphia Semiconductor Index plummeting by over 9%: The Dow rose by 289.33 points, or 0.65%, closing at 44713.58 points. The Nasdaq Index plunged by 612.46 points, or 3.07%, closing at 19341.84 points. The S&P 500 Index fell by 88.96 points, or 1.46%, closing at 6012.28 points. The Philadelphia Semiconductor Index plummeted by 488.70 points, or 9.15%, closing at 4853.24 points. After falling below $98,000, BTC rebounded. In the encryption currency market, according to Binance spot market data, BTC fell below $98,000 yesterday afternoon, dropping to a low of $97,777, but later, perhaps due to market sentiment digestion, BTC made a second attempt to reach $102,000 within 12 hours, with the current currency price temporarily reported at $101,509, falling by 0.08% in the past 24 hours. Nearly $180 million was liquidated in the long and short positions in the entire network within 12 hours. Coinglass data shows that nearly $184 million was liquidated in the long and short positions in the entire network within 12 hours, with long orders getting liquidated approximately $91.45 million, and short orders getting liquidated around $92.46 million; nearly $697 million was liquidated in the entire network within 24 hours, with nearly 260,000 people being liquidated. Related reports: Arthur Hayes warns: BTC may plummet to $70,000, potentially triggering a small financial crisis. Rich Dad author: February will see the 'worst stock market crash in history'! Billions of dollars will flow into BTC and gold. Zhao Changpeng: Insisting on fundamental investing 'will not do Technical Analysis,' I bought BTC in 2014 at $600. The article 'Deepseek kills US stocks! NVIDIA big dump 17% 'Market Cap evaporates 600 billion', BTC falls below 98,000 and rebounds' was first published on BlockTempo, the most influential blockchain news media outlet.