Bitcoin Down Today, Was it Caused by DeepSeek AI?

Bittime - Bitcoin price dropped significantly again, triggering big questions from investors and traders. This “bitcoin down” phenomenon cannot be separated from the role of DeepSeek AI, an artificial intelligence-based application from China which is now in the spotlight of the technology world.

In addition, the higher volatility of the crypto market has led many people to ask, “Why is Bitcoin down today?”

DeepSeek AI and Its Impact on the Crypto Market

DeepSeek AI, a recently launched artificial intelligence application, has taken the tech and digital asset markets by storm. With its advanced technological capabilities, DeepSeek AI manages to rival popular models like ChatGPT, but at a much lower development cost.

Also read: Bitcoin Down Today: Analyze the Causes of BTC Crash and Price Outlook According to Experts

The surge in popularity of this app triggered a massive sell-off in tech stocks in global markets, which in turn led to a drop in the price of Bitcoin and other digital assets.

According to a recent report, the market capitalization for AI-based coins has decreased by 21% in the last 24 hours. The impact was also felt in the Bitcoin market, which fell more than 5% and broke the psychological level of $100,000. Investors see this development as a signal of potential overvaluation in the technology sector, including in the digital asset market.

Why is Bitcoin Down Today?

There are several main reasons that answer the question “Why is Bitcoin down today?”

Negative Market Sentiment

The DeepSeek AI surge has pressured the valuations of major tech stocks, including those with close ties to the digital asset market. This has made investors more cautious about allocating their funds in high-risk assets like Bitcoin.

Sell-off by Large Investors (Whales)

Bitcoin's sharp decline is often attributed to sell-offs by large holders. Data shows that more than $850 million of leveraged positions were liquidated in the last 24 hours, indicating huge pressure on the market.

Global Economic Concerns

Bitcoin's correlation with traditional stock markets continues to increase, especially in US tech stocks. Global economic uncertainties, including the Federal Reserve's upcoming policies, are also adding pressure on BTC prices.

Bitcoin's Outlook Amid Market Pressure

Despite Bitcoin's price drop, some analysts remain optimistic about its long-term prospects. Arthur Hayes, co-founder of BitMEX, predicts that Bitcoin price could experience a further correction to the $70,000-$75,000 range.

Also read: Crypto Market Predictions in 2025: What Will Really Happen?

However, he also believes that looser monetary policies in the future could push the price of BTC to the $250,000 level by the end of this year.

On the other hand, technical analysts note that Bitcoin's main support level is currently around $98,500. If this level holds, there is a possibility that the price of BTC could rise to $106,000 or even higher. However, if the selling pressure continues, the price could fall deeper to touch $90,000.

Conclusion

Today's “bitcoin down” phenomenon reflects the market's sensitivity to global technology trends like DeepSeek AI. While this drop has investors worried, long-term optimism about Bitcoin's potential remains. For those of you who are interested in investing, always do your research and make sure your investment strategy is in line with your risk profile.

FAQ

Why is Bitcoin down today?

Bitcoin dropped today due to negative market sentiment, triggered by the surge in popularity of DeepSeek AI, which caused a massive sell-off in tech stocks and impacted the price of digital assets.

What is DeepSeek AI and how does it affect Bitcoin?

DeepSeek AI is an artificial intelligence application based in China. Its success sparked concerns about the overvaluation of the tech sector, which led to a drop in the price of Bitcoin and other altcoins.

Can Bitcoin go back up after this drop?

Despite the drop in Bitcoin price, some analysts remain optimistic. Some predictions suggest Bitcoin could reach a price of $250,000 by the end of the year if monetary easing policies are reinstated.

How to Buy Crypto on Bittime

Want to trade sell buy Bitcoins and crypto investment easily? Bittime is here to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures every transaction is safe and fast.

Start with registration and identity verification, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Check the exchange rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Also, visit the Bittime Blog for interesting updates and educational information about the crypto world. Find reliable articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your crypto knowledge.

Reference

crypto2community.com, Bitcoin Price Crashes Below $100K as DeepSeek Causes Waves In The Industry: Can Bulls Rebound?, accessed on January 28, 2025.

blockonomi.com, Bitcoin Falls Below $100,000 Amid Chinese AI App Market Disruption, accessed on January 28, 2025.

Author: AWW