Crypto Market Sees Major Shakeup as Tech Stocks Plunge
Bitcoin and Dogecoin Take a Hit
The cryptocurrency market saw a significant decline on Monday, with Bitcoin and Dogecoin being among the hardest hit. Dogecoin, the original meme coin, fell below the $0.31 mark, its lowest price in 2025. Its price now stands at $0.33 per coin, with a 24-hour dip of 5%.
Meme Coins Experience Volatility
Meme coins, highly speculative cryptocurrencies based on internet jokes or culture, often experience high volatility when Bitcoin takes a hit. This was the case on Monday, with several meme coins seeing significant price declines. Among the biggest losers were Pudgy Penguins, Solana Swap, and Pepe, each falling by 16%, 16%, and 10% respectively.
Dogecoin’s Performance
Dogecoin, which gained a cult following in 2020 after Elon Musk expressed his liking for the cryptocurrency, has seen significant growth over the past year. It is still up 312% from its value a year ago, despite its recent decline. The coin’s performance is often linked to Elon Musk’s interests, as he is a prominent figure in the cryptocurrency space.
Reasons Behind the Decline
The decline in the crypto market can be attributed to a combination of factors. One major reason is the recent release of a new open-source large language model by Chinese artificial intelligence startup DeepSeek. The model was praised for its ability to perform similar tasks to more advanced AI systems, using fewer resources. This led to a sell-off of American AI-related companies, causing a ripple effect in the tech and cryptocurrency markets.
Crypto’s Correlation with Stocks
Crypto and stocks are often considered “risk-on” assets, meaning they are prone to large price swings. As such, the decline in tech stocks has had a significant impact on the cryptocurrency market. Bitcoin, in particular, is highly correlated with the US stock market, making it susceptible to fluctuations in stock prices.
Conclusion
In conclusion, the crypto market saw a significant decline on Monday, with Bitcoin and Dogecoin being among the hardest hit. Meme coins, which are highly speculative and often experience high volatility, also saw significant price declines. The decline can be attributed to a combination of factors, including the release of a new AI model and the correlation between crypto and stocks. As the market continues to fluctuate, investors are advised to exercise caution and conduct thorough research before making any investment decisions.
FAQs
Q: What caused the decline in the crypto market?
A: The decline was attributed to a combination of factors, including the release of a new open-source large language model by Chinese artificial intelligence startup DeepSeek and the correlation between crypto and stocks.
Q: Which cryptocurrencies were affected by the decline?
A: Several cryptocurrencies were affected, including Bitcoin, Dogecoin, Pudgy Penguins, Solana Swap, and Pepe.
Q: Is this a significant event in the crypto market?
A: Yes, this is a significant event in the crypto market, as it highlights the correlation between crypto and stocks and the impact that external factors can have on the market.
Q: What does this mean for investors?
A: Investors are advised to exercise caution and conduct thorough research before making any investment decisions. It is essential to stay informed about market trends and developments to make informed investment choices.
