Welcome back to The Breakdown with me, NLW.

It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world.

What's going on, guys? It is Tuesday, January 28th, and today we are talking about deep

Seek crashing Bitcoin. Before we get into that, however, if you are enjoying the breakdown,

please go subscribe to it, give it a rating, give it a review, or if you want to dive deeper

into the conversation, come join us on the Breakers Discord. You can find a link in the show notes

or go to bit.ly slash breakdown pod. All right, friends, one thing to note, I am not assuming any overlap in my listenership between

this show and the AI Daily Brief. However, I have for the last couple of days gone much more

in depth on this deep seek issue, which is going to form the context for today's show.

I'm going to get into it assuming no previous knowledge, but if you do want to go

deeper, I would suggest you go check out the AI Daily Brief. All right, but what we are talking about

today is, of course, this idea that hype around DeepSeak crashed the Bitcoin market. What we're

going to tease out, though, is if that's really all there is to the story. Going back, Bitcoin plummeted on Sunday night as traders digested the release of a new cut-price

AI model out of China. BTC dropped by 5%, hitting a two-week low of 98,000. Bitcoin did rise

quickly back above $100,000 once markets open on Monday morning, but the volatile price action

has some traders spooked. The question, has the release of a cutting-edge Chinese AI model

really made your digital

gold worth less? Or is this just volatile Bitcoin markets overreacting the headlines?

So let's start with a brief explanation of Deepseek and why its release has markets on edge.

Last Monday saw the release of a new model called R1 out of a Chinese lab called Deepseek.

After slowly building momentum throughout the week, the model became a viral hit over the weekend

with its chatbot app hitting number one in the Apple App Store.

...