$BTC Bitcoin, like most other assets, crashed on Monday after DeepSeek, a Chinese startup, disrupted the artificial intelligence industry. The company launched an alternative to ChatGPT that cost way less to build, leading to worries about tech valuations in the United States.
Its launch and initial popularity led to a big drop in US tech stocks, with firms like NVIDIA and Broadcom shedding hundreds of billions of dollars. It also led to a big increase in liquidations in the crypto industry.
The focus among crypto investors is now on the upcoming Federal Reserve interest rates decision. Economists believe that the Fed will live to its guidance by maintaining interest rates unchanged. It has hinted that it will deliver just two rate cuts this year.
Bitcoin price will likely rise if Bitcoin delivers a dovish twist in this meeting, which is highly unlikely because of the recent inflation trends. Recent data showed that the headline Consumer Price Index (CPI) rose from 2.7% in November to 2.9% in December.
