This article is available in Spanish.
The price of Bitcoin (BTC) has fallen below $ 98,000, from $ 105,000 to $ 97,750 today, which means a sudden decrease of no less than -6.8%. The rapid sale coincides with increased volatility on both crypto and traditional markets, where several factors contribute to the downward spiral of BTC.
Why did Bitcoin fall today?
#1 The surprising impact of Deepseek on technology markets
The most important motivation behind the wider risk feeling seems to be the rise of Deepseek, a Chinese platform for artificial intelligence (AI), the rapid rise and cost -effectiveness of which have brought the American technology giants into rudder. Renowned Market Commental Canal The Kobeissi Letter posted Via X:
“The Nasdaq 100 -Futures have now fallen -330 points since the market was opened a few hours ago, while Deepseek is number 1 in the App Store. This is how you know that Deepseek has become a major threat to American large-cap technology. The stock market is not lying. ”
Deepseek is reportedly competing with Chatgpt, but has been developed for a fraction of the costs and with less advanced hardware. Benchmarkts indicate that Deepseek performs better than Chatgpt in categories such as Aime, Math-500 and GPQA, which causes concern that the dominance of the US could be endangered.
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The Kobeissi letter added: “OpenAI … was appreciated in October 2024 at ~ 157 billion dollars … has ~ 22 times more employees than deep chat. This is why the markets are blinded. “
Traders fear that if investors get capital from overloaded AI shares, a broader sale of technology could follow. This also has significant consequences for the bitcoin and cryptomarkt because of its correlation. “Crypto is at the forefront because the markets are closed and it is a beta-activa class with a higher risk,” crypto analyst Miles Deutscher noted Via X.
However, he sees a bright spot for Bitcoin and Crypto as soon as the HUUSSE decreases AI shares: “If Deepseek is the knife that could make the AI sharing soap bubble burst (temporarily), this could actually be bullish for crypto, because the liquidity could turns back. AI shares have sucked up a lot of speculative capital that would have been streamed to BTC/Crypto. “
#2 Pre-FOMC-Risicovering
Another contribution to the current decline is the generally observed pre-FOMC reduction of market risks. Historically, investors herk their portfolios prior to the meetings of the Federal Open Market Committee, planned for 28 and 29 January 2025. Although the consensus indicates that the interest rates can remain unchanged, riskier assets such as Bitcoin and Cryptocurrencies are often confonted in the shift pressure To the crisis. On such announcements.
Deutscher noted: “Pre-FOMC reduction of the risks (this is very normal, especially in an environment in which we are extremely sensitive to interest rates/US dollar/liquidity).”
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Deutscher also speculated about whether FED chairman Jerome Powell could adopt a softer attitude, given the recent transition from the US presidency: “So … if the shares are already in panic, will Jerome Powell really come forward? Just now that Trump has just come to power? Idk … my prediction is that the sale marks the local soil before FOMC. ”
#3 Lack of new price catalyst after Trumps Executive Order
Market participants also mention a observed vacuum of new bullish news after the very first crypto exporting command of last week President Donald Trump. Although the order initially fueled crypto-optimism, traders wanted more due to the lack of a new catalyst. Deutscher called this the “lack of short-term noordster” after the inauguration of Trump. “
#4 Long liquidations worsen the relocation
According to Coinglass factsHas a wave of long -term liquidations increases the downward price promotion. 313,683 traders have been liquidated for the past 24 hours. The total number of crypto liquidations reached $ 853.92 million, with $ 795.5 million in longs.
The largest separate liquidation order took place at HTX for BTC-usdt worth $ 98.46 million. Long positions worth $ 250 million were liquidated on the Bitcoin market alone. The strong increase in the number of liquidations strengthened the fall of BTC, so that more traders had to settle their positions. Analysts regard these forced liquidations as well as a cause and a symptom of increased volatility.
At the time of writing, BTC acted at $ 98,983.
Featured image made with dall.e, graph of tadingview.com