Crypto Stocks Tank: MSTR, COIN & MARA Drop 5% On China’s DeepSeek Jitters

In the pre-market trading session on Monday, crypto stocks have been on a free fall with top firms like MicroStrategy (MSTR), Coinbase (COIN), Marathon Digital (MARA), and others seeing a sharp fall of 5% each. Also, the tech-heavy Nasdaq 100 has tanked over 3.54% as the US tech market prepares for a $1 trillion rout on Monday. The fall comes as China’s AI startup DeepSeek’s popularity rises, as its technology prowess challenges the likes of established players like OpenAI, Anthropic, etc.

Crypto Stocks Face the Heat of Nasdaq 100 Crash

As of press time, the Nasdaq 100 futures are down 3.54% or 770 points sending shockwaves across the global market as well as the crypto market. Bitcoin price has crashed losing crucial support at $100K levels, causing a great spillover effect with a broader market correction. Top crypto stocks like MSTR, COIN, MARA, and others are facing the heat of this correction.

MicroStrategy (MSTR) Tanks 4.95%

In the pre-market trading session on Monday, MicroStrategy share price has extended losses as MSTR stock is down by 4.95% slipping under $350 levels. Although the stock price has been volatile recently, the firm has continued with its Bitcoin acquisition strategy acquiring every week over the past two to three months.

Hinting at further purchases, MicroStrategy executive chairman Michael Saylor hinted that today’s BTC price correction provides an opportunity for long-term investors. “Volatility is a gift to the faithful,” Saylor wrote on X. Keeping in tradition from its past weeks’ announcements, there’s a possibility that MicroStrategy might announce fresh purchases in today’s dip.

COIN Stock Loses 6%, MARA Joins the Crypto Stocks Crash

The COIN stock price also tanked by 6% in the pre-market trading session dropping to $280. The Donald Trump victory has favored a strong rally for Coinbase as the stock rallied from the lows of $180 to the highs of $343 in a month from November to December. Since then, the COIN share price has been volatile and range-bound between $250 and $325. Similarly, Bitcoin miner Marathon Digital (MARA) is another crypto stock losing 5.5% while putting a strong dent to its last week’s gains.

DeepSeek Fears Take Wall Street On A Ride

China’s AI Startup DeepSeek has emerged as the most downloaded app on the Apple Store during the past weekend. Its growing popularity is challenging multi-billion dollar giants like OpenAI as DeepSeek shows heavy technological prowess beating the likes of OpenAI, Anthropic, in certain areas. Furthermore, its built with an investment of just $6 million, against tens of thousands of dollars.

Moreover, it uses less advanced AI chips to deliver eye-popping results thereby challenging US AI dominance. Top US chip companies like Qualcomm(QCOM), Nvidia (NVDA), Broadcom (AVGO), and others tanked 3-12% today. This has also pushed crypto stocks lower along with major crash in AI coins.

Chip Stocks Pre-Market Reaction to DeepSeek:

1. Broadcom, $AVGO: -11.9%
2. Nvidia, $NVDA: -11.5%
3. Taiwan Semi, $TSM: -11.2%
4. Super Micro, $SMCI: -10.8%
5. Arm, $ARM: -10.0%
6. Micron, $MU: -8.7%
7. AMD, $AMD: -5.6%
8. Qualcomm, $QCOM: -2.9%
9. Intel, $INTC: -2.8%

Nvidia is…

— The Kobeissi Letter (@KobeissiLetter) January 27, 2025

Popular financial newsletter The Kobeissi Letter wrote:

“Nvidia is on track to erase $400 BILLION of market cap today. This would be the biggest 1-day market cap loss in a stock in history. US markets are on track to erase over $1 trillion of market cap in Monday’s session. Tech stocks earnings, tariffs, and the FOMC meeting are in the spotlight. It’s going to be another wild week.”

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