Bitcoin Price Crashes Below $98,000: Here’s Why
The price of Bitcoin (BTC) fell below $ 98,000, and from $ 105,000 from $ 97,750 today, it suddenly decreased by -6.8 %. Quickly sell the volatility of cryptocurrencies and the traditional market, which has a variety of factors that lead to the decline of BTC.
Why did Bitcoin fall today?
# 1 Deepseek affects the surprise of the technology market
The main driving force behind the broader adventure seems to be the emergence of DeepSeek. DeepSeek is a Chinese artificial intelligence (AI) platform. Its rapid rise and cost benefits have shocked the American scientific and technological giants. Famous market review channel Kobeissi letter Publish Through x:
“Since the market is open, the Nasdaq 100 futures have now decreased -330, because Deepseek ranks first on the App Store. This is how you know that Deepseek has become the main way to threaten our large CAP technology. Lie “
According to reports, DeepSeek competed with ChatGPT, but it was developed at a small part of the use of less advanced hardware. The benchmark test shows that DeepSeek is better than ChatGPT in AIME, Math-500 and GPQA, which has aroused concerns about the dominant position of the headquarters in the United States.
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The Kobeissi letter added: “Openai … the value in October 2024 is about $ 157 billion … employees’ employees are 22 times that of DeepSeek. This is why the market is blinded.”
Traders are worried that if investors have pulled capital from excessive expansion of AI shares, a wider range of technology may occur. Because of its correlation, this is also of great significance than the Bitcoin and encrypted markets. Crypto analyst Miles Deutscher, “Cryptocurrencies are close and are higher risk of risk Beta asset categories. This is a higher risk β asset category.” Well -known Through X.
However, once AI stocks have disappeared, he sees the front line of Bitcoin and cryptocurrencies: “If DEEPSEEK is possible (temporary) (temporary) to destroy the AI stock bubble knife, then with the rotation of liquidity, this is actually actually actual It may be a bullish of cryptocurrencies.
# 2 Fomc de risk
Another reason for the current decline is that it is usually observedFOMC The market is out of risk. Historically, investors re -adjusted their investment portfolio before the Federal Public Marketing Committee meeting planned from January 28 to 29, 2025. Although consensus shows that interest rates may remain unchanged, such as Bitcoin and cryptocurrencies (such as Bitcoin and cryptocurrencies), such as assets such as assets that are often sold in lead.
Deutscher commented: “Fomc’s pre -risk (this is very normal, especially in an environment where we have a sensitive rate/USD/very liquidity).
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In view of the recent transition of President of the United States, Deutsche Jegis also speculate whether the Fed Chairman Jerome Powell will take a softer position: “So … if the stock is already in a panic state, Jerome Powell is really. Will there be a super hawk? Just as Trump has just taken office? IDK … My prediction is that the selling of the former FOMC marks the local bottom. “
# 3 Trump lacks a new price catalyst after executing the command
Market participants also quoted the first cryptocurrency of last week, and people think Administrative order President Donald Trump. Although the command initially caused the optimism of cryptocurrencies, the lack of new catalysts made traders want more. Deutsche is called “Trump lacks short -term ‘North Star after taking office.”
# 4 long liquidation exacerbates mobile
Based on coinglass dataA series of long -term calculations have expanded the decline in price. 313,683 traders have been liquidated in the past 24 hours. The total encrypted liquidation volume reached 853.9 billion US dollars, and the desire was US $ 795.5 million.
The largest single-liquidation order occurred in BTC-USDT on HTX, worth $ 98.46 million. In the Bitcoin market alone, it liquidated long positions worth $ 250 million. Surge Liquidation The decline of BTC has triggered more traders to relax. Analysts believe that these compulsory liquidation is both the cause and the symptoms of increased volatility.
At the time of release, the transaction price of BTC was $ 98,983.
Use the characteristic images created by Dall.e, chart of tadingView.com
