Unexpected Collapse Of Bitcoin Below 100,000 Dollars This Monday
Brutal drop of bitcoin below $99,000 this Monday, January 27, 2025. This sudden decline reflects investor concerns regarding the upcoming FOMC decisions and technological developments in China, raising fears about the cryptocurrency market.
Bitcoin drops below 100,000 dollars!
On January 27, 2025, bitcoin dropped below the $100,000 mark, reaching $98,800 early in the day. This decline occurred as traders took profits ahead of the first meeting of the Federal Open Market Committee (FOMC). The meeting, which will take place on January 28 and 29, is not expected to announce a rate cut, which has historically influenced the price of BTC. As investors tend to favor or avoid risk assets based on monetary policy decisions.
Another factor contributing to this drop is DeepSeek. This Chinese artificial intelligence company recently unveiled a high-performing and cost-effective AI model built with open-source technologies, challenging the need for vast computing resources for AI innovation. This announcement raised concerns about a possible overvaluation of American tech companies, thereby affecting market sentiment and, consequently, the price of bitcoin.
This bearish trend followed a decline in American stock indices. The S&P 500 and Nasdaq 100 lost up to 2.15% before the market opened. Traders also took protective positions against the drop by buying put options at $95,000 for bitcoin, indicating expectations of short-term downward movements.
An optimistic sentiment nevertheless
Despite this drop, the bullish sentiment remains strong, particularly due to continuous cryptocurrency purchases by World Liberty Financial, Donald Trump, and MicroStrategy led by Michael Saylor. According to the latest news, MicroStrategy is reportedly in the process of acquiring new bitcoins for January 27, according to hints from Michael Saylor.
The drop of bitcoin below $100,000 thus reflects investor concerns regarding the upcoming FOMC decisions and technological developments in China. It remains to be seen how this trend will evolve in the coming days.
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Le monde évolue et l'adaptation est la meilleure arme pour survivre dans cet univers ondoyant. Community manager crypto à la base, je m'intéresse à tout ce qui touche de près ou de loin à la blockchain et ses dérivés. Dans l'optique de partager mon expérience et de faire connaître un domaine qui me passionne, rien de mieux que de rédiger des articles informatifs et décontractés à la fois.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.