Leading tech stocks’ recovery after an artificial intelligence model from China’s DeepSeek shook the US market has raised concerns about the overvaluation of the nation’s AI sector. However, crypto mining stocks closed the trading day on a negative for the second day.
According to Google Finance, competitor Cleanspark’s (CLSK) share price fell 2.47%, while MARA Holdings (MARA) and Riot Platforms (RIOT) dropped 0.14% and 4.37%, respectively.
Crypto Mining Stocks Tank
Among the seven leading US tech companies, chipmaker Nvidia (NVDA) noted the most significant recovery, closing the day at more than 8.8% gains after plunging 17% on Jan. 27.
CypherMindHQ.com Artificial Intelligence Crypto Trading System - Surpass the competition with this cutting-edge AI system! Utilize the prowess of innovative algorithms and amplify your crypto trading strategies with CypherMindHQ. Learn more today!
As the difficulty of mining Bitcoin increases and competition intensifies, many miners have been reserving large portions of their processing capacity to support and train AI models, resulting in significant declines in cryptocurrency miner stocks.
After DeepSeek stated that its new R-1 chatbot, which was built for just $6 million, could compete with OpenAI’s ChatGPT, billions of dollars were wiped out of the US market. Many investors were concerned that the shares of the top AI-based tech firms could be overpriced. However, Apple (AAPL) shares increased by 3.65%, Amazon (AMZN) increased by 1.16%, and Meta Platforms (META) increased by 2.17%.
Also, Microsoft (MSFT) gained 2.87%, and Alphabet (GOOG), the parent company of Google, increased by 1.70% on Jan. 28. According to the macro resource account The Kobessi Letter, the S&P 500 noted its “third biggest single-day total market cap gain for a stock in history.”
AI Cryptocurrency Prices Continue to Decline
According to on-chain data, the market capitalization of AI-related cryptocurrency tokens fell 5.11% in the last day to $42.33 billion. With a 20.29% decline over the previous day, the newly released Venice Token (VVV), a business that says it provides private access to DeepSeek’s AI model, led the losses among AI tokens.
Virtuals Protocol (VIRTUALS), an AI agent platform, also noted an 11.75% decline. Bitcoin, however, is still trading above the crucial $100,000 milestone since market forecasts indicate that the Federal Open Market Committee (FOMC) won’t cut interest rates on Jan. 29, which is what many participants in the cryptocurrency market had hoped.
According to market analytical platforms, there is a 99.5% possibility that the Fed will maintain its interest rate at 4.25% to 4.50% based on the implied probabilities of the future market.
Demand For Crypto Mining and AI-driven Semi-conductors Grow
Due to the high demand for chipmaking tools that improve AI and cryptocurrency mining, ASML Holdings (a leading semiconductor firm in the Netherlands) has reported a record revenue of €7.09 billion in bookings for Q4 2024.
The surge in bookings suggests increased demand for its sophisticated chipmaking machines. As a top semiconductor equipment manufacturer, ASML’s performance significantly impacts the cryptocurrency mining sector.
CypherMindHQ.com Artificial Intelligence Crypto Trading System - Outpace the competition with this high-end AI system! Leverage the capabilities of progressive algorithms and enhance your crypto trading performance with CypherMindHQ. Learn more today!
ASML’s Q4 Report
The company announced on Wednesday that ASML’s fourth-quarter net bookings increased by 169% compared to the previous quarter. This exceeded the €3.99 billion anticipated and substantially increased from the €2.63 billion disclosed in the third quarter.
The corporation reported net sales of €28.3 billion and net income of €7.6 billion for the entire year. In 2025, ASML anticipates total net sales of €30 billion and €35 billion.
ASML believes AI will play a vital role in the semiconductor sector. AI systems rely on high-performance processors and sophisticated manufacturing techniques. Hence, they require expensive machinery, such as extended ultraviolet (EUV) lithography tools, to create the best-performing semiconductors.
ASML’s Semi-Conductors Boost Crypto Mining Operations
In addition to AI, ASML’s modern semiconductor machinery is essential for creating high-performance chips for devices used in crypto mining. The company’s technology is necessary to maximize the effectiveness and efficiency of mining operations.
Ethereum’s support for smart contracts and decentralized applications (DApps) drives the demand for semiconductors that can manage high processing loads.
