Bitcoin Drop: 5 Key Insights into the Current Challenges!

Bitcoin (BTC) started the last week of January with a marked drop below $100,000, falling to its lowest level in 10 days. Although the crypto queen has slightly rebounded to $100,000, investors are navigating a context of increasing tension! Between the volatility of financial markets and uncertainties from the Federal Reserve… Here are 5 things to know about bitcoin this week.

Bitcoin under pressure at $100,000: five key points this week

As bitcoin slowly recovers from its drop below $99,000 earlier today, crypto investors are worried, and here are 5 things they absolutely need to know about BTC this week.

Bitcoin affected by the fall of US stocks

Bitcoin lost up to 4% on January 27, reaching a 10-day low around $98,000. This decline reflects market nervousness, compounded by the drop in futures contracts on US stocks. Nevertheless, some traders remain confident, stating that this correction could allow for important liquidity recovery before a rebound.

DeepSeek and the rivalry with ChatGPT

The rise of DeepSeek, a Chinese AI startup, is worrying technology investors. With explosive popularity and reported competitive advantages, DeepSeek has triggered a drop in the stock prices of American tech giants, also affecting the crypto market, which is often correlated with high-risk stocks.

The Fed’s imminent decision

The Federal Reserve (Fed) will announce its decision on interest rates this week. Although unlikely, a rate cut could restore investor confidence. Expectations are focused on economic data, such as Q4 GDP and the PCE index, the Fed’s preferred inflation indicator.

Derivatives markets remain cautious

Even before this drop, bitcoin derivatives traders were adopting a bearish position. The price difference between the spot market and futures contracts on Binance is at its lowest level since December, signaling a sense of caution.

Critical bitcoin levels to watch

With bitcoin currently struggling to maintain $100,000, key support levels, notably at $96,000 and $90,000, are essential. A drop below these thresholds could lead to unrealized losses for many short-term investors.

What path will bitcoin take after January 29?

After the FOMC meeting on January 29, 2025, the trajectory of bitcoin could be influenced by the Fed’s decisions regarding interest rates. If the Fed maintains a strict monetary policy, BTC could continue to decline, potentially reaching levels around $90,000. However, a favorable announcement could trigger a rebound, with price projections reaching up to $150,000 by the end of the year. Investors will closely monitor economic signals to adjust their strategies.

While BTC just reached several major records in 2025, it is still going through a period of increased volatility with a recent drop below $100,000. Investors need to remain vigilant regarding critical support levels and economic signals, as these factors will determine bitcoin’s future trajectory.