Bitcoin Price Drops Below $98,000 Amid Market Volatility
The price of Bitcoin has dropped below $98,000, falling from $105,000 to a low of $97,750, reflecting a decrease of 6.8%. This decline aligns with increased volatility in crypto and traditional markets, driven by several factors.
Key Factors Behind Bitcoin's Decline
- Impact of DeepSeek on Tech Markets
DeepSeek, a Chinese AI platform, is causing concern among US tech giants. Its rapid rise and efficiency have led to significant sell-offs in the Nasdaq 100 futures, down 330 points. The potential threat to US-based AI firms could trigger a broader market downturn that affects Bitcoin due to their correlation. - Pre-FOMC Market De-Risking
As the Federal Open Market Committee (FOMC) meeting approaches on January 28-29, investors tend to reduce exposure to riskier assets like Bitcoin. Although interest rates are expected to remain unchanged, historical trends indicate selling pressure prior to such meetings. - Lack of New Price Catalyst After Trump's Executive Order
Following President Trump's first crypto executive order, there has been a lack of new bullish developments, leaving traders without fresh motivation. This void has contributed to a drop in optimism around Bitcoin. - Long Liquidations Intensifying Downward Pressure
Recent data indicates over 313,683 traders were liquidated in the last 24 hours, contributing to a total of $853.92 million in crypto liquidations. The largest single liquidation for BTC-USDT was valued at $98.46 million, exacerbating the price decline.
As of now, BTC is trading at $98,983.
