Michael Saylor’s MicroStrategy Plummets Over 5% In Pre-Market As Chinese AI Startup DeepSeek Sends Shockwaves Through Crypto Universe: BTC Falls 5%, Dipping Below 100K

Shares of Michael Saylor‘s MicroStrategy Inc (NASDAQ:MSTR) fell over 5% in pre-market trade after Bitcoin (CRYPTO: BTC) prices plunged below $100,000 following a drop in U.S. index futures.

What Happened: The fall in cryptocurrencies and equities intensified as China’s DeepSeek became the number one downloaded application on Apple Inc.’s App Store over the weekend.

DeepSeek introduced an AI model that demonstrates capabilities with a significantly reduced cost. This development challenged the prevailing assumption that massive GPU investments are essential for high-performing AI.

Furthermore, Bitcoin and its levered play MicroStrategy fell as CME futures opened and its FedWatch tool projected a 99.5% probability of no change in interest rates for the upcoming Jan. 31 Federal Open Market Committee (FOMC) decision. The probability of having no change in the rates was at 65.6% for March and 44.4% for May.