DeepSeek’s New AI Chip Threatens US Crypto Market Stability

China's DeepSeek has unveiled a domestically developed AI chip, challenging Nvidia's dominance and potentially destabilizing US markets. The move, born from Sino-American trade tensions, carries significant implications for cryptocurrency valuations tied to technological supply chains.

While the chip's specifications trail Nvidia's current offerings, its strategic value lies in China's reduced reliance on foreign technology. This development could force Nvidia to retreat from Chinese markets, creating Ripple effects across crypto sectors dependent on GPU manufacturers.

The crypto market now faces a geopolitical inflection point. As Beijing pursues semiconductor independence, digital assets may experience volatility stemming from disrupted AI hardware supply chains and shifting investor sentiment toward tech-exposed cryptocurrencies.