Bitcoin slipped below $100,000 on Monday, hitting its lowest level in 11 days as cautious sentiment spread across financial markets. Analysts attributed the decline to a selloff in Western AI-related stocks, triggered by the rising prominence of Chinese AI firm DeepSeek.
The world’s largest cryptocurrency, which had surged past $100,000 following Donald Trump’s U.S. presidential election victory, lost momentum last week. As of 11:56 GMT, Bitcoin was down nearly 6% on the day, trading at $98,852.17 after a sharp drop to its lowest level since January 16.
Market analysts compared the AI-driven selloff to a “Sputnik moment,” referencing the Soviet Union’s 1950s satellite launch that sparked the space race. The fear that DeepSeek could challenge Western AI dominance sent technology stocks tumbling, with ripple effects spilling into the crypto market.
“Current risk-off sentiment in the markets, seemingly due to DeepSeek’s emergence, appears to be driving Bitcoin’s losses,” said Simon Peters, an analyst at eToro.
Standard Chartered’s global head of digital asset research, Geoffrey Kendrick, noted that a decline in Nasdaq futures had weighed on crypto markets. Additionally, disappointment over the Trump administration’s handling of cryptocurrency policy—specifically its disclosure of a Bitcoin stockpile—fueled speculation of a potential digital asset selloff.
Some investors were surprised that cryptocurrency was absent from Trump’s initial policy announcements after taking office last week. However, an executive order on Thursday established a working group to draft new crypto regulations and review the government’s Bitcoin reserves. Meanwhile, the Securities and Exchange Commission (SEC) tightened accounting guidelines, a move the crypto industry claims has hindered broader adoption.
Adding to market uncertainty, Thomas Puech, CEO of digital asset hedge fund Indigo, warned that riskier assets—including Bitcoin—were also under pressure due to expectations that interest rates may remain elevated for a prolonged period.
admin
