Bitcoin fell below $100,000 on Monday, hitting an 11-day low as market caution spiked following the debut of a Chinese AI model that triggered a selloff in Western tech stocks.
The world’s largest cryptocurrency, which recently rallied past $100,000 after U.S. President Donald Trump’s election, lost momentum last week. By 11:56 GMT, Bitcoin was trading at $98,852.17, down 6% for the day and marking its lowest level since January 16.
The decline mirrored a sharp drop in tech stocks, as investors reacted to concerns that Chinese startup DeepSeek's AI model could challenge Western dominance in the sector. Analysts referred to this as AI’s “Sputnik moment,” comparing it to the 1950s space race ignited by the Soviet Union’s launch of a satellite.
"Bitcoin’s losses appear tied to risk-off sentiment across markets due to DeepSeek," noted Simon Peters, an analyst at eToro. Geoffrey Kendrick, global head of digital asset research at Standard Chartered, said Nasdaq futures' decline negatively impacted crypto markets, while disappointment over the Trump administration’s crypto-related announcements further fueled the selloff.
President Trump’s executive order last week created a working group to develop crypto regulations and explore a cryptocurrency stockpile. However, crypto investors were disappointed when the topic was largely absent from Trump’s initial day-one policy announcements. The SEC also recently shelved accounting guidance that the crypto industry had criticized for hindering adoption.
Rising concerns over interest rates staying higher for longer added pressure on risk assets, noted Thomas Puech, CEO of digital asset hedge fund Indigo. The U.S. Federal Reserve is set to meet this week, with expectations it will maintain current interest rates.
Read next
22:30
crypto
Donald Trump's media company has filed for a Bitcoin and Ethereum exchange-traded fund (ETF), prompting fresh concerns over potential conflicts of interest as the U.S. President remains active in both politics and cryptocurrency ventures.
18:00
Bitcoin
Dozens of public companies, including one founded by Donald Trump, are adding bitcoin to their balance sheets, betting big on crypto amid soaring prices and political backing from the U.S. President.
11:30
Bitcoin
The Moscow Exchange will begin calculating and publishing a Bitcoin index starting Tuesday, using data from major crypto platforms, as interest in digital assets grows in Russia amid Western sanctions.
18:37
Bitcoin
Japanese hotelier Metaplanet aims to raise $5.4 billion to dramatically expand its Bitcoin holdings to 210,000 BTC by 2027, eyeing 1% of total supply. Shares surged 15% as it mirrors MicroStrategy's successful pivot, becoming a "Bitcoin treasury company" with a "Bitcoin Hotel" set to open in 2026.
12:20
Tariff
Ongoing uncertainty surrounding US President Donald Trump's tariff strategy has driven Bitcoin's value below the $75,000 mark on Monday.
What is your opinion on this topic?
Leave the first comment