Bitcoin fell sharply below $99,000 on Monday, January 27, 2025. The sudden drop reflects investor concerns about impending FOMC decisions and technological developments in China, raising concerns in the cryptocurrency market.
On January 27, 2025, Bitcoin fell below $100,000, hitting $98,800 early in the day. The drop came as traders took profits ahead of the first Federal Open Market Committee (FOMC) meeting. The meeting, which will be held on January 28-29, is not expected to announce an interest rate cut, which has historically influenced the price of BTC. This is because investors prefer or avoid risk assets depending on monetary policy decisions.
Another factor in this fall is DeepSeek. This Chinese artificial intelligence company recently unveiled a powerful and cost-effective AI model built with open-source technologies, calling into question the need for vast computing resources for AI innovation. This announcement has raised concerns about the possible overvaluation of American tech companies, affecting market sentiment and, consequently, the price of bitcoin.
The bearish trend followed a decline in U.S. stock indices. The S&P 500 and Nasdaq 100 lost as much as 2.15% before the market opened. Traders also took downside protection positions, buying $95,000 put options for bitcoin, indicating expectations of short-term downward movements.
A bullish sentiment despite everything
Despite the decline, bullish sentiment remains strong, thanks in part to continued cryptocurrency purchases by Donald Trump’s World Liberty Financial and Michael Saylor’s MicroStrategy. The latest news is that MicroStrategy is reportedly on track to acquire more bitcoins for January 27, according to Michael Saylor’s hints.
