Bitcoin dropped under $100,000 on January 27, down from its peak of $109,114 reached during Donald Trump's recent inauguration. The decline comes as DeepSeek, a new Chinese artificial intelligence application, disrupts the technology sector.
The crypto market, which typically moves in tandem with tech stocks, has felt the impact across the board. Solana has declined over 10%, while other digital currencies show similar downward trends.
Despite current market uncertainty, institutional interest in crypto remains strong. Bitcoin ETFs have attracted $4.2 billion in 2025, including $1 billion following Trump's inauguration. MicroStrategy continues its Bitcoin purchases, adding 14,600 BTC since January.
The Trump administration has moved quickly on cryptocurrency policy, creating a working group to develop new regulations and explore establishing a national cryptocurrency stockpile. At the World Economic Forum, Trump advocated for lower interest rates, citing declining oil prices.
Markets now await several key economic events this week, including the Federal Reserve's first policy meeting under the new administration, along with GDP data, PCE figures, and unemployment reports. These indicators will likely influence both traditional and cryptocurrency markets.#MarketSentimentToday