Why Crypto Prices are Dropping Since Yesterday
The cryptocurrency market has been in decline, and a series of events may explain why.
A Chinese company called DeepSeek recently launched a groundbreaking AI chatbot that is outperforming OpenAI’s ChatGPT in some areas. This unexpected success has made investors uneasy, as it raises questions about the competitive landscape in tech.
The Connection Between Tech Stocks and Crypto-
When tech companies face uncertainty, their stock prices often drop. Many investors who hold tech stocks also have investments in cryptocurrencies like Bitcoin. As a result, when they start selling tech stocks, they often sell their crypto holdings too, triggering a chain reaction in the market.
Expectations vs. Reality: Trump's Bitcoin Announcement-
Adding to the tension, there were high expectations around a potential Bitcoin-related announcement from former President Trump. While he revealed some plans for digital assets, he did not announce a U.S. government $BTC Bitcoin reserve, as some had speculated.
The Federal Reserve Looms
The situation is further complicated by the upcoming Federal Reserve meeting, where interest rate decisions will be made. Investors often become cautious in the lead-up to these meetings, which can exacerbate market volatility.
