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Bitcoin

Bitcoin Price Lost $100,000 Mark Again As FOMC Approaches

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Bitcoin Price Lost $100,000 Mark Again As FOMC Approaches

Key Points:

  • Bitcoin price fell below $100,000, dropping over 6% as traders took profits ahead of the Federal Reserve’s FOMC meeting.
  • Chinese AI firm DeepSeek’s low-cost, competitive product against OpenAI triggered bearish sentiment.

Bitcoin price fell below $100,000 on Monday, declining more than 6% from Sunday’s high of over $105,000.

Read more: Rosseti Bitcoin Mining Proposed to Expand to Increase Utilization of Power Grid  

Bitcoin Price Drops Below $100,000 Ahead of Key Fed Meeting

The drop comes ahead of the Federal Reserve’s Federal Open Market Committee (FOMC) meeting on January 28-29, where no indications of a rate cut are expected. Such events often influence Bitcoin price as investors reassess their appetite for risk assets.

Market sentiment was further dampened by developments in the technology sector. Chinese AI company DeepSeek unveiled a competitive product to OpenAI’s models at a fraction of the cost. This has negatively impacted high-growth tech stocks like Nvidia, which are crucial to the AI boom, creating bearish pressure that also affected Bitcoin prices.

U.S. Launches Crypto Policy Group Amid Industry Volatility

U.S. President Donald Trump announced the creation of a cryptocurrency policy group last week. The group is tasked with drafting new regulations and exploring establishing a national cryptocurrency reserve within six months. While the announcement initially provided optimism for the crypto sector, its impact was short-lived amid broader market pressures.

Bitcoin’s close correlation with high-growth tech stocks surged during the AI investment wave. However, as competition in AI intensifies and uncertainties grow, Bitcoin faces heightened volatility.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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John Kojo Kumi

27 January 2025, 09:35:00 GMT +0000

John Kojo Kumi is a cryptocurrency researcher and writer specializing in emerging startups, tokenomics, and market dynamics within the blockchain ecosystem. With years of experience in crypto journalism and blockchain research, he provides in-depth coverage of decentralized finance (DeFi), NFTs, and Web3 innovations.

He holds a Bachelor of Arts in Geography and Rural Development from Kwame Nkrumah University of Science and Technology, Kumasi, bringing a multidisciplinary perspective to the evolving digital asset space. As a Crypto News Writer, he tracks and reports on industry trends, while his role as a Registrar at the Commission on Human Rights and Administrative Justice reflects his commitment to governance and transparency.

His expertise spans content strategy, SEO optimization, and technical research, enabling him to craft insightful, data-driven analyses. Passionate about blockchain’s transformative potential, he strives to equip readers with the knowledge to navigate the complexities of digital assets and decentralized technologies.

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