Asia Colour

And… breathe. DeepSeek is still dominating the App Store charts. Its latest AI release sent shockwaves through Wall Street and risk-on assets yesterday, with the NASDAQ closing 3% lower and NVIDIA plunging an astonishing 17%.

The AI mania that defined 2024 pushed NASDAQ valuations to unsustainable levels, trading at nearly 27x forward earnings. However, 2025 presents a new set of challenges to that narrative, with uncertainties surrounding the Fed’s rate path, Trump’s policies, and this week’s upcoming tech earnings poised to add downside risk to risk-on assets.

Crypto-linked equities weren’t spared, with Core Scientific plunging 29% and miners like Hut 8, Riot Platforms, and Cipher Mining also slid. This decline reflects their growing integration with AI, as many are repurposing mining facilities into higher-tier data centers for high-performance computing.

This move appears driven more by risk-off sentiment than crypto-specific factors. BTC has found some support since our last broadcast and is stabilizing above $102k, with skew favoring calls over puts. This week could test whether BTC’s correlation with equities weakens, particularly as a favorable regulatory environment offers potential support.

As we approach the Year of the Snake, the market’s twists and turns remind us of the wisdom, adaptability, and resilience this zodiac symbolizes – qualities that will be essential as we navigate 2025’s challenges and opportunities. Wishing everyone prosperity and success in the year ahead!