Bitcoin falls below $100,000 due to tech sector selloff and concerns over DeepSeek's breakthrough.

From Nasdaq Corporation
January 27, 2025 11:13:05 AM:

Bitcoin slipped to an 11-day low, falling below $100,000 due to a broader selloff in tech stocks. The largest cryptocurrency dropped 6% to $98,852.17 amid concerns over Chinese AI startup DeepSeek’s breakthrough. Market uncertainty and Trump’s limited crypto support have added pressure to the crypto sector, with Nasdaq futures declining.

Bitcoin’s decline is linked to tech sector concerns and disappointment over Trump’s crypto support. Federal Reserve policy uncertainty and interest rate concerns have also impacted risk assets. Investors await outcomes of the Fed’s policy meeting and look to Trump’s crypto-focused working group for regulatory clarity. Broader risk sentiment is expected to continue influencing crypto performance.

Despite the recent slump, analysts believe Bitcoin is positioned for long-term strength with favorable regulatory developments and adoption. The emergence of DeepSeek highlights increased competition in the tech space. The focus remains on policy clarity and macroeconomic factors for digital assets amid a volatile market environment. Investors with a long-term perspective see opportunities in the evolving cryptocurrency landscape.

Read more at Nasdaq: DeepSeek’s AI Breakthrough Sparks Volatility in Cryptocurrency (COIN) Markets