Finance
Bitcoin drops to 11-day low amid tech selloff
Published by Global Banking & Finance Review®
Posted on January 27, 2025
2 min readLast updated: January 27, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 27, 2025
2 min readLast updated: January 27, 2026
Bitcoin falls to an 11-day low due to a tech selloff sparked by Chinese AI model fears, impacting cryptocurrency markets.
LONDON (Reuters) - Bitcoin fell below $100,000 on Monday, hitting its lowest in 11 days, in a move analysts attributed to a wave of caution after the surging popularity of a Chinese artificial intelligence model sparked a selloff in Western AI-related stocks.
The world's biggest cryptocurrency struggled to make gains last week, as a rally that had seen it break above $100,000 after U.S. President Donald Trump's election ran out of steam.
At 1156 GMT, bitcoin was at $98,852.17, down around 6% on the day, having fallen sharply in early trading to hit its lowest since Jan. 16.
Technology stocks plunged, as traders worried that Chinese AI startup DeepSeek could threaten Western companies' dominance of the sector, in a move some called AI's "Sputnik moment", referring to the former Soviet Union's launch of a satellite that marked the start of the space race in the late 1950s.
Bitcoin's losses are "seemingly driven by some risk-off sentiment circulating the markets currently due to DeepSeek," wrote eToro analyst Simon Peters.
Geoffrey Kendrick, global head of digital asset research at Standard Chartered, said a decline in Nasdaq futures had hurt crypto markets, but that disappointment over the Trump administration's announcement about a cryptocurrency stockpile had put digital assets more at risk of a sharp selloff.
Crypto failed to feature in Trump's day-one announcements after taking office last week, leaving some investors disappointed. In an executive order on Thursday, Trump created a working group to draft new crypto rules and explore a crypto stockpile, while the Securities and Exchange Commission (SEC) spiked accounting guidance that the industry said had stymied crypto adoption.
The prospect of interest rates staying higher for longer also hurt riskier assets, said Thomas Puech, CEO of digital asset hedge fund Indigo.
U.S. Federal Reserve policymakers meet this week and are expected to keep interest rates on hold.
(Reporting by Elizabeth Howcroft; Editing by Amanda Cooper and Louise Heavens)
Bitcoin fell below $100,000 due to a wave of caution in the markets, attributed to concerns over a Chinese AI startup threatening Western companies.
On the day mentioned, Bitcoin was down around 6%, hitting its lowest price since January 16.
The decline in technology stocks, particularly due to fears surrounding a Chinese AI startup, negatively affected the cryptocurrency market.
Analysts noted that the losses in Bitcoin are driven by risk-off sentiment circulating the markets, particularly influenced by the tech sector's performance.
U.S. Federal Reserve policymakers are expected to keep interest rates on hold during their upcoming meeting, which could further impact riskier assets.
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