Why Is Bitcoin Down Today? $BTC Falls Below $100,000 as Chinese AI App Rattles Markets
Bitcoin dropped under $100,000 on January 27, down from its peak of $109,114 reached during Donald Trump's recent inauguration. The decline comes as DeepSeek, a new Chinese artificial intelligence application, disrupts the technology sector.
DeepSeek has captured investor attention by matching the capabilities of U.S.-based OpenAI's technology while using fewer computer chips - a significant cost and efficiency advantage. The app's rapid rise to the top spot on the App Store has raised concerns about U.S. tech companies' market position. Market analyst Adam Kobeissi reports that these worries triggered a 330-point drop in Nasdaq 100 futures.
The crypto market, which typically moves in tandem with tech stocks, has felt the impact across the board. Solana has declined over 10%, while other digital currencies show similar downward
BitMex co-founder Arthur Hayes predicts Bitcoin could fall further to between $70,000 and $75,000. However, Hayes also forecasts a recovery to $250,000 by year-end, citing expected Federal Reserve stimulus measures.