The turbulence in the AI industry has led to a decline in Bitcoin, and analysts believe that the initial market reaction may have been somewhat excessive

Odaily Planet Daily News: DeepSeek's success indicates that competition in artificial intelligence from China is becoming increasingly fierce, exacerbating concerns about the sustainability of high valuations in US technology stocks. The risk in the cryptocurrency industry is that this anxiety may weaken broader speculative enthusiasm and weaken the boost brought by Trump's executive order supporting digital asset regulation. Rick Maeda, a research analyst at Presto Research, wrote in a report to clients: "Although the cryptocurrency market is still closely related to the sentiment of the technology industry, periods of increased volatility are often temporary, and initial market reactions may be somewhat excessive. According to data compiled by Bloomberg, the 30 day correlation coefficient between Bitcoin and the Nasdaq 100 index is approximately 0.67. A reading of 1 indicates synchronous asset trends, while a reading of -1 indicates inverse correlation. Charlie Morris, Chief Investment Officer of ByteTree Asset Management, believes that it is becoming increasingly difficult to distinguish between Bitcoin and large tech companies, given that they are advancing simultaneously. He wrote in a report that despite executive orders and a decline in the US dollar index this year, "Bitcoin has not been able to reach a new high. Some areas of the digital asset market have fallen into a deep correction. An index tracking the top 100 digital assets has fallen by over 10% since the beginning of this year. (Bloomberg)