There is a Bitcoin on a screen showing the Bitcoin exchange rate against the US Dollar.
Fernando Gutierrez Juarez | Photo Alliance | Getty Images
Cryptocurrencies fell to start the last week of January, with the market entering a lull after hitting a new record high and falling due to a DeepSeek-led sell-off in technology stocks.
price Bitcoin The coin fell 5% to $98,432.54, according to Coin Metrics. Earlier, it fell to a low of $97,750.00. The broader cryptocurrency market, as measured by the CoinDesk 20 Index, fell nearly 10%.
Nasdaq futures fell about 4% in early trading.
shares Coinbase and Accurate strategy They fell 6% and 5%, respectively, in pre-market trading. Bitcoin miners supporting AI projects have suffered deeper cuts. Basic scientific It decreased by 18.5%, while Terawolf He lost 14% and IreneIris Energy, formerly known as Iris Energy, fell 10%.
Cryptocurrencies have been under pressure from the rout in technology stocks. Chinese startup DeepSeek said it may have created a competitive AI model at a fraction of the cost, raising concerns about US dominance in AI and big tech spending on AI models and data centers.
“Today’s 3% drop in Nasdaq futures (in DeepSeek News), so far, has led to an overnight liquidation of digital assets,” Standard Chartered’s Jeff Kendrick said in a note on Monday. “This relationship highlights the continuing strong (and strengthening) relationship between digital assets and the technology sector. Bitcoin remains strongly linked to Nasdaq, much more than it does to gold.”
Bitcoin fell below $100,000, weighed down by the DeepSeek stock sell-off
Bitcoin has seen over $250 million in long liquidations over the past 24 hours, According to CoinGeckoAs traders who used leverage to bet that the price of Bitcoin would continue to rise, they were forced to sell their assets to cover their losses.
The selling comes after a mixed market response to President Donald Trump’s widely expected executive order on cryptocurrencies, issued Thursday afternoon, and a lack of news since then. Some cryptocurrency traders were disappointed to request They were not fully committed to creating inventory, and some did not care about the language of “inventory” versus reserve. (While the latter would involve buying bitcoin in regular installments, the stock would not simply sell any of the bitcoin currently held by the US government.) Bitcoin hit a new record above $109,000 last week in anticipation of the executive order.
“Ultimately, this made digital assets more at risk of a sharp sell-off whether or not the driver of the selling came from the digital asset (in this case the Nasdaq),” Kendrick said of the initial market reaction to the matter. . “However, at least the news of the Trump administration is out there, so the disappointment/confusion and thus the ‘hope phase’ is over.”
Investors may also give up on risk ahead of this week’s Fed meeting, which is scheduled to conclude on Wednesday.
“Investors are hoping the Fed will lean more to the dovish side, but they fear the Fed will not be as dovish as the market would like to see,” said Joel Krueger, market strategist at LMAX. “The most important thing to learn now is to see the forest through the trees. When we look at the Bitcoin chart, there is nothing bearish about the price action.”
— CNBC’s Michael Bloom contributed reporting.
