Bitcoin Swings Fueled by AI Shakeup Cast Cloud Over Crypto Rally

An upheaval in global markets sparked by Chinese artificial intelligence startup DeepSeek triggered volatility in digital assets, raising fresh questions about the outlook for crypto following last year’s boom in prices.

Bitcoin traded at $102,316 as of 1:54 p.m, Tuesday in New York, partly paring a 3% drop from in the prior session that came amid a plunge in the Nasdaq 100 Index of US tech stocks. Tokens such as Ether and Solana trimmed deeper selloffs.

The sudden success of DeepSeek signaled growing AI competition from China, exacerbating worries over the sustainability of rich US tech stock valuations predicated ...