BTC decreases to $ 99,000 with the effect of Deepseek and the Federal Committee of the Open Market on prices
Bitcoin (BTC) decreased to less than $ 99,000 early on Monday as traders made profits before the first meeting of the Federal Open Market Committee in the United States this year, scheduled for later this week, and Deepseek has affected the strong artificial intelligence company China is based on the morale of the American technology sector.
Traders do not expect any indicators to reduce interest rates at the Federal Open Market Committee meeting to be held for two days from January 28 to 29, which usually affected bitcoin prices as investors prefer or move away from dangerous assets.
“American economic data shows that there may be less need to reduce federal interest rates in the short term,” Ben Al -Baz, Managing Director of Hashkey Global, told Coindesk in a message on Telegram.
“Fears about commercial wars and customs definitions are still in place, but the upcoming feelings remain strong as Microstrate and World Liberty Financial continues to buy cryptocurrencies.”
Bitcoin fell almost 6 % from its highest level on Sunday, which exceeded 105,000 dollars, with a sharp decrease with the opening of Asian markets on Monday. This came despite the main incentive on Friday, when US President Donald Trump ordered the formation of a group of cryptocurrencies to provide advice and industry in the country within six months.
The market value of encrypted currencies decreased by 8 %, while Coindesk 20 (CD20) with a broad base decreased by more than 8.14 %.
This decrease came in the wake of the decrease in American stock indicators – which tend to bitcoin’s movements to the opposite – with the decrease in the futures contracts of the S&P 500 and NASDAQ 100 by up to 2.15 % on Monday before the opening of the market.
It stems a lot of anxiety of potential exaggeration in the evaluation of American technology companies, as the latest Deepseek artificial intelligence model is much cheaper in production and built with easy -to -reach open source technology.
As Coindsk reported on Monday, the data from Deepseek published on Huging Face, a forum for the artificial intelligence industry, shows that its model is outperforming Openai, all while it is based on a budget of 6 million dollars and a small part of the GPUS which is that Upeenai uses. Uses – which recently closed a $ 6.6 billion tour of more than $ 157 billion.
Openai previously requested to fund trillions of dollars to build widely artificial intelligence systems and is part of the new American Stargate project, which attracted $ 500 billion investments and includes Trump Softbank and Oracle, to build the country’s artificial intelligence centers.
However, the costs and features reported in Deepseek threaten the firm narration of the need for huge arithmetic resources to innovate artificial intelligence, which may reduce the competitive advantage of American technology companies and question the sustainability of their high assessments – which affects the morale of the broader market and bitcoin in the short term.
As such, traders have uploaded $ 95,000 strike options for Bitcoin to protect from the downward side before the week, indicating that the expectations of moving below are still prevailing in the market.
“The office has noticed increasing interest in January $ 95,000, as the market sought to obtain downsic protection after BTC lost momentum during the American session yesterday,” traders at QCP Capital, based in Singapore, said in a broadcast on Saturday.
QCP added at that time: “With the absence of major stimuli before the Federal Open Market Committee meeting next week, the market is likely to remain bound in the range so that there will be more clarity on how the recent weak consumer price index affects the upcoming policy decisions of the Federal Reserve “.
