• Education
    • Higher Education
    • Scholarships & Grants
    • Online Learning
    • School Reforms
    • Research & Innovation
  • Lifestyle
    • Travel
    • Food & Drink
    • Fashion & Beauty
    • Home & Living
    • Relationships & Family
  • Technology & Startups
    • Software & Apps
    • Startup Success Stories
    • Startups & Innovations
    • Tech Regulations
    • Venture Capital
    • Artificial Intelligence
    • Cybersecurity
    • Emerging Technologies
    • Gadgets & Devices
    • Industry Analysis
  • About us
  • Contact
  • Advertise with Us
  • Privacy & Policy
Today Headline
  • Home
  • World News
    • Us & Canada
    • Europe
    • Asia
    • Africa
    • Middle East
  • Politics
    • Elections
    • Political Parties
    • Government Policies
    • International Relations
    • Legislative News
  • Business & Finance
    • Market Trends
    • Stock Market
    • Entrepreneurship
    • Corporate News
    • Economic Policies
  • Science & Environment
    • Space Exploration
    • Climate Change
    • Wildlife & Conservation
    • Environmental Policies
    • Medical Research
  • Health
    • Public Health
    • Mental Health
    • Medical Breakthroughs
    • Fitness & Nutrition
    • Pandemic Updates
  • Sports
    • Football
    • Basketball
    • Tennis
    • Olympics
    • Motorsport
  • Entertainment
    • Movies
    • Music
    • TV & Streaming
    • Celebrity News
    • Awards & Festivals
  • Crime & Justice
    • Court Cases
    • Cybercrime
    • Policing
    • Criminal Investigations
    • Legal Reforms
No Result
View All Result
  • Home
  • World News
    • Us & Canada
    • Europe
    • Asia
    • Africa
    • Middle East
  • Politics
    • Elections
    • Political Parties
    • Government Policies
    • International Relations
    • Legislative News
  • Business & Finance
    • Market Trends
    • Stock Market
    • Entrepreneurship
    • Corporate News
    • Economic Policies
  • Science & Environment
    • Space Exploration
    • Climate Change
    • Wildlife & Conservation
    • Environmental Policies
    • Medical Research
  • Health
    • Public Health
    • Mental Health
    • Medical Breakthroughs
    • Fitness & Nutrition
    • Pandemic Updates
  • Sports
    • Football
    • Basketball
    • Tennis
    • Olympics
    • Motorsport
  • Entertainment
    • Movies
    • Music
    • TV & Streaming
    • Celebrity News
    • Awards & Festivals
  • Crime & Justice
    • Court Cases
    • Cybercrime
    • Policing
    • Criminal Investigations
    • Legal Reforms
No Result
View All Result
Today Headline
No Result
View All Result
Home Business & Finance

Why Bitcoin, Ethereum, and Dogecoin Crashed Today todayheadline

January 27, 2025
in Business & Finance
Reading Time: 3 mins read
A A
0
^IXIC Chart
6
SHARES
12
VIEWS
Share on FacebookShare on Twitter


The crypto market had a terrible start to the week and it wasn’t even crypto itself that caused the plunge.

Instead, DeepSeek and the drama around the potential disruption from the latest open-source artificial intelligence (AI) model has caused a collapse in tech and high-growth stocks and that’s correlated to crypto as well.

Bitcoin (BTC -3.21%) has fallen 5% in the past 24 hours as of 3 p.m. ET, Ethereum (ETH -4.38%) is down 7.7%, and Dogecoin (DOGE -4.88%) is down 8.5%. But is a recovery on the way?

Tech’s drop and the fall of crypto

The reality for crypto investors is that cryptocurrencies trade in a correlated manner to tech and growth stocks, not independently. So, when the market sells off, it’s not surprising to see crypto down as well.

Today’s market drop is related to DeepSeek, the Chinese AI firm that released a model that competes with the best OpenAI models for a fraction of the cost. And it was allegedly trained for a fraction of the cost of the best foundational models today.

If the DeepSeek model was indeed as cheap as they say, it’s possible the investment needed for artificial intelligence data centers will not be as high as projected, leading to a pullback in spending. That’s not confirmed, but it’s the fear of the market today and fear and uncertainty aren’t things the market likes.

Tech has fueled a lot of the market’s gains over the past two years so it’s no surprise it will fuel its fall as well.

Is crypto a safe haven or high risk?

If this is the end of the tech bull run, it may be bad news for crypto. The last time the market fell sharply in 2022, crypto losses outpaced tech losses by a wide margin.

^IXIC data by YCharts

The crypto industry is in a very different position today, but over the past three months there was likely a pull forward of value from regulatory tailwinds. Now, investors are in a “wait and see” moment for new legislation and ultimately innovation on the blockchain. That may take longer than investors have patience for.

From speculation to value

Bitcoin and Dogecoin have both benefited from the increase in the value of speculative assets in the past few months. Still, they’ve lost momentum as the market demands proof that tech and growth investments are generating real value. Given the extremely lofty valuation of the market and the lack of value currently being demonstrated by AI, I think the market may see a repeat of 2022.

Ethereum is the one token that should be showing signs of value given the utility that can be built on the Ethereum blockchain, but the recent launch and success of President Donald Trump’s meme coin on Solana has caused investors to question whether the slow speed and high cost of Ethereum is too much to overcome.

I think the blockchain still has a lot of potential, but the tokens that underlie it like Bitcoin, Ethereum, and Dogecoin may not be where the value is created as non-fungible tokens and stablecoins become more popular. Today’s drop may seem unrelated to crypto, but it seemed that way in 2022 as well and the market crashed nonetheless.

Travis Hoium has positions in Ethereum and Solana. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and Solana. The Motley Fool has a disclosure policy.

Tags: BitcoincrashedDogecoinEthereumtodaytodayheadline
Previous Post

U.S. stocks mixed at close of trade; Dow Jones Industrial Average up 0.65% todayheadline

Next Post

Mark Sears sits out second half of Alabama win over LSU todayheadline

Related Posts

Amazon is selling a 'beautiful' $525 Bulova watch for only $280 that offers 'luxury at an affordable price'

Amazon is selling a 'beautiful' $525 Bulova watch for only $280 that offers 'luxury at an affordable price' todayheadline

May 23, 2025
5
Exclusive-Foxconn among potential bidders for Singaporean chip assembly firm UTAC in $3 billion deal, sources say

Exclusive-Foxconn among potential bidders for Singaporean chip assembly firm UTAC in $3 billion deal, sources say todayheadline

May 23, 2025
5
Next Post
Mark Sears sits out second half of Alabama win over LSU

Mark Sears sits out second half of Alabama win over LSU todayheadline

  • Trending
  • Comments
  • Latest
Family calls for change after B.C. nurse dies by suicide after attacks on the job

Family calls for change after B.C. nurse dies by suicide after attacks on the job

April 2, 2025
Pioneering 3D printing project shares successes

Product reduces TPH levels to non-hazardous status

November 27, 2024

Hospital Mergers Fail to Deliver Better Care or Lower Costs, Study Finds todayheadline

December 31, 2024

Police ID man who died after Corso Italia fight

December 23, 2024
Harris tells supporters 'never give up' and urges peaceful transfer of power

Harris tells supporters ‘never give up’ and urges peaceful transfer of power

0
Des Moines Man Accused Of Shooting Ex-Girlfriend's Mother

Des Moines Man Accused Of Shooting Ex-Girlfriend’s Mother

0

Trump ‘looks forward’ to White House meeting with Biden

0
Catholic voters were critical to Donald Trump’s blowout victory: ‘Harris snubbed us’

Catholic voters were critical to Donald Trump’s blowout victory: ‘Harris snubbed us’

0
Underwater photo of a humpback whale

Could deciphering dolphin language help us communicate with ET?

May 23, 2025
$21M funding to bring AI to rural clinics in India

$21M funding to bring AI to rural clinics in India

May 23, 2025
Become the NBA's most difficult team to beat

Become the NBA’s most difficult team to beat

May 23, 2025
Starmer's migration plans will damage Wales, first minister fears

Starmer’s migration plans will damage Wales, first minister fears

May 23, 2025

Recent News

Underwater photo of a humpback whale

Could deciphering dolphin language help us communicate with ET?

May 23, 2025
4
$21M funding to bring AI to rural clinics in India

$21M funding to bring AI to rural clinics in India

May 23, 2025
3
Become the NBA's most difficult team to beat

Become the NBA’s most difficult team to beat

May 23, 2025
2
Starmer's migration plans will damage Wales, first minister fears

Starmer’s migration plans will damage Wales, first minister fears

May 23, 2025
3

TodayHeadline is a dynamic news website dedicated to delivering up-to-date and comprehensive news coverage from around the globe.

Follow Us

Browse by Category

  • Africa
  • Asia
  • Basketball
  • Business & Finance
  • Climate Change
  • Crime & Justice
  • Economic Policies
  • Elections
  • Entertainment
  • Entrepreneurship
  • Environmental Policies
  • Europe
  • Football
  • Gadgets & Devices
  • Health
  • Medical Research
  • Mental Health
  • Middle East
  • Motorsport
  • Olympics
  • Politics
  • Public Health
  • Relationships & Family
  • Science & Environment
  • Software & Apps
  • Space Exploration
  • Sports
  • Stock Market
  • Technology & Startups
  • Tennis
  • Travel
  • Uncategorized
  • Us & Canada
  • Wildlife & Conservation
  • World News

Recent News

Underwater photo of a humpback whale

Could deciphering dolphin language help us communicate with ET?

May 23, 2025
$21M funding to bring AI to rural clinics in India

$21M funding to bring AI to rural clinics in India

May 23, 2025
  • Education
  • Lifestyle
  • Technology & Startups
  • About us
  • Contact
  • Advertise with Us
  • Privacy & Policy

© 2024 Todayheadline.co

Welcome Back!

OR

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Business & Finance
  • Corporate News
  • Economic Policies
  • Entrepreneurship
  • Market Trends
  • Crime & Justice
  • Court Cases
  • Criminal Investigations
  • Cybercrime
  • Legal Reforms
  • Policing
  • Education
  • Higher Education
  • Online Learning
  • Entertainment
  • Awards & Festivals
  • Celebrity News
  • Movies
  • Music
  • Health
  • Fitness & Nutrition
  • Medical Breakthroughs
  • Mental Health
  • Pandemic Updates
  • Lifestyle
  • Fashion & Beauty
  • Food & Drink
  • Home & Living
  • Politics
  • Elections
  • Government Policies
  • International Relations
  • Legislative News
  • Political Parties
  • Africa
  • Asia
  • Europe
  • Middle East
  • Artificial Intelligence
  • Cybersecurity
  • Emerging Technologies
  • Gadgets & Devices
  • Industry Analysis
  • Basketball
  • Football
  • Motorsport
  • Olympics
  • Climate Change
  • Environmental Policies
  • Medical Research
  • Science & Environment
  • Space Exploration
  • Wildlife & Conservation
  • Sports
  • Tennis
  • Technology & Startups
  • Software & Apps
  • Startup Success Stories
  • Startups & Innovations
  • Tech Regulations
  • Venture Capital
  • Uncategorized
  • World News
  • Us & Canada
  • Public Health
  • Relationships & Family
  • Travel
  • Research & Innovation
  • Scholarships & Grants
  • School Reforms
  • Stock Market
  • TV & Streaming
  • Advertise with Us
  • Privacy & Policy
  • About us
  • Contact

© 2024 Todayheadline.co