Bitcoin Struggles as DeepSeek AI Concerns Drive Market Selloff

Bitcoin Falls 6% After AI Tech Selloff and Disappointment Over Trump’s Crypto Plan
Bitcoin Hits 11-Day Low as Chinese AI Threat and Fed Policy Weigh on Markets
Bitcoin Retreats Below $100K as DeepSeek AI Sparks Risk-Off Sentiment
Bitcoin Slides Amid AI Disruption and Uncertainty Over U.S. Crypto Strategy

Bitcoin fell below $100,000 on Monday, reaching its lowest level in 11 days. Analysts attribute the decline to a wave of caution triggered by the growing popularity of a Chinese AI model, which caused a selloff in Western AI-related stocks.

The world’s largest cryptocurrency struggled to maintain momentum last week, after breaking above the $100,000 mark following U.S. President Donald Trump’s election. The rally appeared to run out of steam, and Bitcoin’s price fell sharply on Monday, reaching $98,852.17, down around 6% for the day.

Technology stocks also experienced significant losses, as traders feared that DeepSeek, a Chinese AI startup, could challenge Western companies’ dominance in the sector. Some analysts referred to this development as AI’s “Sputnik moment,” drawing a parallel to the Soviet Union’s launch of the first satellite that marked the beginning of the space race in the late 1950s.

Bitcoin’s drop is seen as part of broader risk-off sentiment in the markets, according to eToro analyst Simon Peters, who linked the losses to the growing concerns about DeepSeek.

Geoffrey Kendrick, global head of digital asset research at Standard Chartered, pointed to the decline in Nasdaq futures as another factor negatively impacting the crypto market. He also noted that disappointment over President Trump’s lack of immediate action on a cryptocurrency stockpile made digital assets more vulnerable to a sharp selloff.

On Thursday, Trump signed an executive order creating a working group to draft new crypto regulations and explore the possibility of a cryptocurrency stockpile. However, the absence of immediate announcements left some investors dissatisfied. Additionally, the U.S. Securities and Exchange Commission (SEC) blocked accounting guidance that had previously hindered crypto adoption.

The prospect of higher interest rates staying for a longer period also weighed on riskier assets, with digital asset hedge fund CEO Thomas Puech noting that it added pressure to the market. U.S. Federal Reserve policymakers are meeting this week, and they are expected to keep interest rates steady.

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