Why is BTC dropping?

On January 27, 2025, Bitcoin experienced a significant drop in its value, falling from approximately $105,000 to $101,000 throughout the day.

This decrease is mainly attributed to the announcement by the Chinese company DeepSeek regarding the development of an open-source artificial intelligence model that will compete with OpenAI's ChatGPT. This advancement raised concerns in the tech markets, causing a 3% drop in Nasdaq futures and negatively impacting cryptocurrencies, including Bitcoin.

Additionally, the recent assumption of Donald Trump as President of the United States has introduced volatility in the financial markets. His deregulation policies and tax changes have generated uncertainty among investors, also affecting the cryptocurrency market.

It is important to highlight that the cryptocurrency market is highly volatile and can be influenced by various factors, including technological developments and political changes.

For a more detailed perspective on Bitcoin's behavior on this date, you can consult the following analysis: