the recent downturn in the cryptocurrency market occurred after the release of DeepSeek R1 by the Chinese artificial intelligence laboratory DeepSeek, which had a significant impact on the prices of AI-related tokens. The total market value of cryptocurrencies in the artificial intelligence field also suffered a heavy blow, dropping by 10% from $47.54 billion on January 26 to $42.50 billion at the time of writing. Trading volume increased by over 42% in the past 24 hours, reaching $3.55 billion, which increased the intensity of selling pressure.

In addition, the downturn in the cryptocurrency market was accompanied by a wave of margin liquidation. Margin allows traders to borrow funds to increase their trading positions, thereby amplifying potential gains and losses. The latest data shows that nearly $860 million in liquidation has occurred in the cryptocurrency market in the past 24 hours, of which $794 million is long liquidation. $260 million in long positions for Bitcoin has been liquidated, and liquidation is still ongoing at the time of publication.