#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.