The cryptocurrency market experienced a significant downturn as traders opted to reduce their risk exposure after the highly anticipated launch of the DeepSeek AI app. Bitcoin and altcoins were hit hard by the selling pressure, causing a sharp decline in their prices.

The market had been buzzing with excitement leading up to the launch of the DeepSeek AI app, which promised to revolutionize the way traders analyze and make decisions in the cryptocurrency market. However, as the app went live, traders seemed to have a change of heart and decided to play it safe by selling off their holdings.

This sudden shift in sentiment can be attributed to the recent volatility in the market, with many traders still reeling from the sharp price swings of the past few weeks. The fear of missing out on potential gains has been replaced by a more cautious approach, as traders look to protect their profits and minimize losses.

Bitcoin, the largest cryptocurrency by market capitalization, saw a significant drop in its price, falling below the $50,000 mark. Altcoins, which had been performing well in recent weeks, also saw a sharp decline in their prices, with some dropping by double-digit percentages.

While the market may have taken a hit, it is important to remember that volatility is a common occurrence in the cryptocurrency world. As the market continues to mature, we can expect to see more stability and less drastic price movements.

In the meantime, traders will need to stay vigilant and keep a close eye on market trends and developments. The launch of the DeepSeek AI app may have caused a temporary dip, but it also presents an opportunity for traders to reassess their strategies and make informed decisions in the ever-changing cryptocurrency landscape.