Bitcoin Plunges Below $98,000: DeepSeek and FOMC Weigh on Crypto Market
Bitcoin (BTC) has experienced a sharp decline, falling below the $98,000 mark. This significant drop, which follows a recent peak of $105,000, is attributed to several factors, including the emergence of DeepSeek AI, pre-FOMC market sentiment, and a lack of new bullish catalysts.
DeepSeek’s Impact
The rise of DeepSeek, a Chinese AI platform, has raised concerns about the dominance of US tech giants. Its cost-effectiveness and strong performance have triggered a sell-off in tech stocks, which has impacted Bitcoin due to market correlation.
Pre-FOMC De-risking
Investors often adjust their portfolios ahead of Federal Open Market Committee (FOMC) meetings. This de-risking behavior, coupled with uncertainty about interest rates, has contributed to Bitcoin’s decline.
Lack of New Catalysts
The recent executive order on crypto has been viewed positively, but the market now seeks further bullish news to sustain upward momentum.
Liquidations Exacerbate Decline
A significant number of long positions have been liquidated, adding to the downward pressure on Bitcoin’s price. These forced liquidations reflect the market’s heightened volatility.
Market Outlook
Bitcoin’s price currently hovers around $98,983. The market remains volatile, and investors are closely monitoring developments related to DeepSeek, the FOMC meeting, and any new crypto-related announcements.
Disclaimer: This article provides information only and should not be taken as financial advice. Consult a financial advisor before making investment decisions.
