- Bitcoin dips below $100K amid market panic over China’s DeepSeek AI launch.
- DeepSeek AI rivals OpenAI with groundbreaking cost efficiency and rapid adoption.
- Investors de-risk ahead of the FOMC meeting, impacting stocks and crypto markets.
Bitcoin dropped below $100,000 as the crypto market reacted to the changing tech scene. The sell-off comes from a confluence of factors, including the launch of DeepSeek, a Chinese AI rival to ChatGPT.
Built for under $10 million—a fraction of the cost compared to US-based AI firms like OpenAI and Meta—DeepSeek has already clinched the top spot on the Apple App Store. Its sudden popularity has raised concerns about overvaluation in U.S. tech stocks, pushing investors to adjust their portfolios.
As global tech markets deal with the new AI’s disruptive entry, fears of a tech sell-off are spilling into crypto. Known for its inherent volatility and high sensitivity to broader trends, the digital asset space is feeling the brunt of this risk-off sentiment.
Adding fuel to the fire, macroeconomic factors like the upcoming FOMC meeting and heightened sensitivity to U.S. dollar liquidity have increased market jitters.
Related: Bitcoin Price Dips Again—What Hayes Thinks Will Happen Next
Market Experts: Bitcoin Dip Could Be a Chance to Buy
Analysts, however, see the turbulence as a prime buying opportunity for Bitcoin. Renowned crypto analyst Michael van de Poppe urged investors to remain calm despite Bitcoin’s drop. He highlighted that the cryptocurrency has entered an “exciting entry zone,” a level he previously predicted as suitable for buying.
Still, he cautioned that a failure to hold this range could result in further declines toward range lows. Another encouraging development is the absence of large negative spikes in the Short-Term Holder Profit/Loss to Exchanges metric.
In simple terms: short-term holders are not panicking and selling their BTC at a loss in large quantities. This could be interpreted as a sign of relative market stability and a lack of widespread fear among investors.
Related: Is Bitcoin the Answer to Traditional Market Uncertainty?
Nevertheless, the unprecedented success of DeepSeek has sparked intense discussions about the valuation of the U.S. tech sector, which surged over the past two years due to AI hype. Investors are now questioning whether American tech giants can maintain dominance as cheaper alternatives from China emerge.
With global markets closed for the weekend, crypto appears to be front-running the tech sell-off, leaving traders to wonder if this dip is a temporary shock or the start of a bigger correction.
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