Crypto Mining Stocks Sink Again as Tech Recovers after DeepSeek Shock

Crypto mining stocks tumble for a second day while tech stocks rebound, Nvidia surges 8.8%, and Bitcoin hovers near $100K amid Fed rate speculation.

Crypto mining stocks are feeling the heat for a second straight day as concerns over AI-driven market overvaluation shake investor confidence. Riot Platforms (RIOT) dropped 4.37% on Jan. 28, while Cleanspark (CLSK) and MARA Holdings (MARA) slipped 2.47% and 0.14%, respectively. Meanwhile, the S&P 500 gained momentum, recovering from the chaos triggered by DeepSeek’s new AI model, which sent shockwaves through the market just a day earlier.

Nvidia Leads Tech Comeback with Massive Gains

Chipmaker Nvidia (NVDA) staged the biggest rebound among the U.S. tech giants, surging over 8.8% after tumbling 17% on Jan. 27. Other major players, including Apple (AAPL), Amazon (AMZN), and Microsoft (MSFT), also posted solid gains, with the S&P 500 recording its third-largest single-day market cap increase in history, according to The Kobessi Letter.

AI Crypto Tokens Keep Falling amid Market Uncertainty

AI-focused crypto tokens continue their slide, with the sector’s market capitalization shedding 5.11% in the past 24 hours, according to CoinMarketCap. The Venice Token (VVV), linked to DeepSeek’s AI model, plunged 20.29%, leading the declines, while Virtuals Protocol (VIRTUALS) lost 11.75%.

Bitcoin Holds Near $100K as Interest Rate Speculation Grows

Bitcoin remains steady near the crucial $100,000 mark, as traders await the Federal Open Market Committee’s interest rate decision on Jan. 29. Market expectations suggest a 99.5% probability that the Fed will keep rates unchanged at 4.25% to 4.50%, according to CME FedWatch.

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