Bitcoin Price Crashes Below $98,000: Here’s Why
The price of Bitcoin (BTC) has fallen below $ 98,000, from $ 105,000 today to $ 97,750, a decrease of -6.8%. The rapid selling of Bitcoin and the fluctuations of cryptocurrencies and traditional markets have intensified at the same time, and various factors have led to the decline in Bitcoin’s spiral.
Why did Bitcoin fall today?
#1 Deepseek’s amazing impact on the technology market
The main driving force behind the wider risk aversion seems to be the emergence of the Chinese artificial intelligence (AI) platform Deepseek. The rapid rise and cost benefits make American science and technology giants feel disturbed. The famous market review media “Kobeissi Letter” release Through x:
“Since opening a few hours ago, the Nasdaq 100 Index Futures has now fallen-330, because Deepseek ranks first on the App Store. It can be seen that DeepSeek has become the main threat of large American technology stocks. Lie “
According to reports, Deepseek competed with ChatGPT, but its development cost is only a small part of ChatGPT, and the hardware used is not very advanced. The benchmark test shows that DeepSeek’s performance in AIME, Math-500, and GPQA is better than ChatGPT, which has aroused concerns about the leading position of American artificial intelligence companies that may face risks.
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“Kobeissi Letter” added: “In October 2024, OpenAI’s valuation was about $ 157 billion … The number of employees was 22 times that of Deepseek. This is why the market caught off guard.”
Traders are worried that if investors withdraw capital from excessive expansion of artificial intelligence stocks, they may trigger wider range of selling scientific and technological stocks. Due to its correlation, this Bitcoin and cryptocurrency markets also have a significant impact. “As the market is closed, cryptocurrencies are in a leading position. It is a kind of asset category with a high risk of Beta,” cryptocurrency analyst Miles Deutscher Well -known Through X.
However, once the prosperity of artificial intelligence stocks faded, he saw the front line of Bitcoin and cryptocurrencies: “If DeepSeek is a knife that can (temporarily) piercing artificial intelligence stock bubbles, then with the return of liquidity, this is the return of liquidity, this return, this is the return of liquidity, this return, this is the return of liquidity, this is the return of liquidity, this is the return of liquidity. In fact, it may be beneficial to cryptocurrencies. Artificial intelligence stocks absorb a large number of speculative capital, and these capitals have previously flowed into Bitcoin/cryptocurrencies.
#2 The de -risk before the Federal Open Marketing Committee was held
Another factor that causes the current economic decline is generally observedFederal Public Marketing Committee Market risk. Historically, investors will re -adjust their investment portfolio before January 28 to 29, 2025. Although consensus indicates that interest rates may remain unchanged, assets such as Bitcoin and cryptocurrencies are usually faced with selling pressures such as selling pressure before the meeting.
Doje passenger commented: “It is very normal before FOMC (this is very normal, especially in an environment where we are extremely sensitive to interest rate/USD/liquidity).”
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Doje passenger also speculated whether, in view of the recent transition of US presidential positions, whether the Fed Chairman Jerom Powell may take a more gentle position: “Then … if the stock market is already in a panic mode, Jerome Powell will really perform Super Eagle? I just took office?
#3 Trump lacks a new price catalyst after administrative order
Market participants also pointed out that after the first cryptocurrency since the history of last week, the new bullish news appeared vacuum. Administrative order Proposed by President Donald Trump. Although the order initially promoted the optimistic emotions of cryptocurrencies, lack of new catalysts made traders want more. Doruche called this “Trump lacks ‘Arctic Star’ in the short term after his inauguration.
#4 Long -term liquidation exacerbates this trend
According to Koblas dataA series of multi -header clearing enlarged the downward trend of price. 313,683 traders have been liquidated over the past 24 hours. The total amount of cryptocurrencies reached US $ 8539.2 billion, of which 795.5 million US dollars were available.
HTX’s largest BTC-USDT strong flat order is worth $ 98.46 million. In the Bitcoin market alone, there is a $ 250 million multi -header. Surge Liquidation The decline of Bitcoin has been enlarged, causing more traders to close the position. Analysts believe that these compulsory liquidations are both the cause of fluctuations and their symptoms.
As of press time, the BTC transaction price was $ 98,983.
Use special pictures created by dall.e, the chart comes from tadingView.com
