Bitcoin tumbled below $100,000 on Monday, reaching its lowest level in 11 days as a wave of caution swept through financial markets following a sharp selloff in AI-related stocks.
The world’s largest cryptocurrency fell 6% to $98,852.17 by midday GMT, retreating from recent highs fueled by optimism after Donald Trump’s election victory. Analysts pointed to concerns over Chinese AI startup DeepSeek, which sparked fears that Western tech firms could lose their dominance, prompting what some called AI’s “Sputnik moment.”
“Bitcoin’s drop is seemingly driven by risk-off sentiment linked to DeepSeek’s rise,” said Simon Peters, analyst at eToro.
Crypto markets also reacted negatively to disappointment over Trump’s stance on digital assets. While his administration created a crypto working group and repealed restrictive SEC accounting guidance, digital assets were absent from his day-one executive orders, dampening investor hopes.
Adding to Bitcoin’s struggles, concerns over U.S. interest rates staying high have weighed on risk assets. The Federal Reserve meets this week and is expected to keep rates unchanged, further pressuring speculative investments.
Despite the downturn, analysts suggest Bitcoin’s long-term trajectory remains tied to regulatory developments and broader macroeconomic trends.
Related Readings:
.
#Bitcoin #Falls #100K #Selloff #Sparks #Market #Jitters