The reason for the collapse of cryptocurrencies today. Why will it continue to fall every day?
Today, January 27, 2025, cryptocurrencies have experienced a significant drop. Bitcoin, for example, fell below $100,000, reaching its lowest level in 11 days.
This decline is attributed to several factors:
Advances in artificial intelligence from China: The Chinese company DeepSeek launched an open-source artificial intelligence model that competes with ChatGPT. This development raised concerns in Western tech markets, triggering a massive sell-off of AI-related stocks and indirectly affecting the cryptocurrency market.
Expectations about interest rates in the United States: It is anticipated that the Federal Reserve will keep interest rates high for a longer period, leading investors to be more cautious with higher-risk assets, including cryptocurrencies.
Political changes in the United States: The recent assumption of Donald Trump to the presidency has generated uncertainty in financial markets. Although his administration has shown support for cryptocurrencies, expectations regarding new regulations and tax changes have increased volatility in the market.
These combined factors have contributed to the drastic fall of cryptocurrencies today.
