The cryptocurrency market, including Bitcoin, has seen a sharp decline following the introduction of a new artificial intelligence model from China, which triggered a global sell-off of risky assets.

According to Bloomberg, Bitcoin dropped by 6.5% on Monday morning in London, marking the largest single-day decline since December 6. Smaller tokens suffered even greater losses, with XRP falling by 9% and Solana experiencing similar declines.

This downturn reflects weakness across most stock markets, particularly a sharp drop in futures for American tech stocks.

Cryptocurrency traders have been largely unresponsive to an executive order from Donald Trump aimed at supporting the industry, signed last week following his return to the White House.

Some experts believe that this move was already priced in. However, concerns about the potential impact of the Chinese startup DeepSeek's AI model on tech company valuations have added to the pessimism in the cryptocurrency market on Monday.

As of 14:20 Kyiv time, Bitcoin was trading at around $99,150.

Reminder:

On January 20, Bitcoin hit an all-time high, reaching $109,007 at 09:06 on that day.

The Chinese startup DeepSeek's advancements in artificial intelligence triggered a sell-off in global tech stocks, questioning America's technological dominance.