Why crypto market crashed? ✍️

Good evening to all my friends. I hope you all are doing well. I am having a fantastic day. Today i am going to discuss about market dump. Once again, due to unexpected FUD (fear, uncertainty, doubt), we’ve seen a market crash and investors are panicking. To understand this, let’s look at what’s been happening recently. Back in December 2022, when ChatGPT was introduced, it led to a huge rise in GPU demand. Companies like Nvidia, which manufacture GPUs, saw their stock prices rise, and this trend was also visible in the crypto market, where AI-related coins performed better during market crashes.

Now, after the recent market dip, there’s growing concern that AI stocks, especially those related to OpenAI and ChatGPT, might be overvalued. The reason is that cheaper AI models, like DeepSeek in China, are emerging. These models use less powerful chips but are cost-effective, making investors question whether the high-end, expensive AI models are worth the price. This is causing a sell-off in the market, which is also affecting crypto prices. So, if you're wondering whether to sell or hold AI-related coins, keep in mind that Trump has recently announced a $500 billion investment in AI infrastructure. This is a massive amount compared to the market cap of most cryptocurrencies, indicating that AI is still a strong sector to invest in. In times like this, it’s important to hold on to your AI-related investments while the market recovers. That's it for today. Thanks & have a good day!!