The cryptocurrency market is experiencing a significant downturn today, largely driven by the release of DeepSeek R1, a new AI model from China's DeepSeek lab. This model has been hailed as a major advancement in artificial intelligence, offering performance comparable to leading models from OpenAI at a fraction of the cost. The news has led to a reassessment of the value of AI-related crypto assets, causing a sharp sell-off. Artificial Superintelligence Alliance (FET) is among the hardest hit, as investors reevaluate the potential of tokens tied to GPU-intensive operations. The broader crypto market has also been affected, with Bitcoin and Ethereum experiencing notable declines.
The impact of DeepSeek's release has been compounded by macroeconomic factors, including a stronger U.S. dollar and anticipation of the Federal Reserve's upcoming meeting. The U.S. dollar index has climbed, making risk assets like cryptocurrencies less attractive. Additionally, the market is on edge ahead of the Federal Reserve's meeting, where interest rates are expected to remain steady. This uncertainty has added to the pressure on the already volatile crypto market, leading to widespread liquidations and further price declines.
Artificial Superintelligence Alliance (FET) has seen a 4.41% decrease in its price today, currently trading at $1.128545. The token reached a high of $1.182989 and a low of $1.060082 during the day.