Kimi K3 AI Model Triggers Market Selloff, Bitcoin Falls

A new AI model called Kimi K3 has caused a market selloff, dragging Bitcoin and other major crypto assets down. The model, released by Chinese startup Moonshot AI, has raised concerns about US semiconductor valuations, leading to losses in tech stocks and the broader Nasdaq.

Bitcoin fell 1.8% over the past 24 hours, while Ethereum dropped 2.6%. Solana's price also decreased, falling 2.3%, and XRP slipped towards $1.07. The Crypto Fear and Greed Index currently stands at 27, indicating that the market is in fear territory.

The emergence of competitive Chinese AI models has become a familiar pattern, prompting investors to reassess US chipmaker valuations. This reaction is similar to what happened last year with DeepSeek, where weakness in tech stocks quickly spread across risk assets, including crypto.