#DeepSeekImpact

Bitcoin and altcoins saw a sharp sell-off as traders cut risk after the popular launch of DeepSeek

Bitcoin dropped below $98,000 on January 27, but the price has since recovered to trade near the psychological $100,000 level. The drop was driven by the rapid rise of Chinese AI app DeepSeek, which has raised concerns about increased competition in the AI ​​sector. Although cryptocurrencies are not directly correlated, the flight to safety saw $864 million liquidated in crypto markets in the space of 24 hours.

Bitcoin

$102,774

BitMEX co-founder Arthur Hayes warned his followers on X of a sharp correction in Bitcoin, but said the price could recover and end the year at $250,000 when money printing resumes.

Market participants will be closely watching the outcome of the Federal Open Market Committee meeting on January 28-29, where the Fed is expected to pause interest rate cuts.

Although Bitcoin struggles to reach its all-time high, MicroStrategy has continued its buying spree for the 12th consecutive week. The world’s largest Bitcoin holder has acquired 10,107 BTC.