Cryptocurrencies plunge amid new Chinese AI model and Trump's policies

Bitcoin and other cryptocurrencies tumbled Monday as the emergence of a new Chinese artificial intelligence model triggered a global selloff in riskier assets.

According to news agencies, concerns that Chinese startup DeepSeek’s AI model will hit tech valuations added to the risk-off mood in crypto.

Bitcoin fell 9% to below $100,000, tracking a broader decline in equity markets as tariff threats from U.S. President Donald Trump rattled risk appetite. Technology stocks were unsettled by the disruptive new AI offering from China.

Crypto traders have so far shrugged off Trump's executive order to support the industry last week, shortly after he returned to the White House. Some argue that prices already reflected the move.

Persistent uncertainty over Trump's policies continued to pressure Bitcoin, after the President announced new, albeit vague plans to draft a regulatory framework for the industry.

Risk appetite was also pressured by anticipation of a Federal Reserve meeting this week, where the central bank is widely expected to hold interest rates and strike a hawkish chord.

The slump comes after Trump on Friday ordered the creation of a working group to advise the White House on crypto policy in a long-awaited executive action. The group is tasked with proposing a regulatory framework for digital assets in the U.S. within six months, while evaluating the creation of a crypto stockpile. The order stopped short of confirming that the U.S. would establish a Bitcoin reserve — something Trump had vowed to do on the campaign trail.