- Bitcoin drops below $99,000 as traders take profits ahead of the U.S. FOMC meeting.
- Concerns over China’s DeepSeek AI disrupting U.S. tech sector fuel risk aversion.
- Broader market selloff drags down altcoins like Ethereum, Solana, and XRP.
The crypto market experienced a sharp decline as Bitcoin fell below $99,000, shedding over 6% in 24 hours. This comes ahead of the U.S. Federal Open Market Committee (FOMC) meeting, where traders expect no major shifts in monetary policy.
Adding to the turmoil, concerns about China’s DeepSeek AI disrupting U.S.-based tech have shaken investor confidence. The AI model’s affordability and accessibility have spurred fears of overvaluation in U.S. tech stocks, triggering a cascading effect into the crypto market.
Crypto Tumbles as Global Concerns and Profit-Taking Shake Markets
Bitcoin’s descent below the $100,000 mark signals a pivotal moment in the crypto market’s volatility. This dip comes on the heels of the U.S. FOMC meeting, where monetary policy uncertainty looms large. Traders, wary of risk assets in this environment, opted to lock in profits. As a result, the global crypto market cap dropped by over 5% in 24 hours, dragging major altcoins and memecoins along with it.
The crash was further exacerbated by fears surrounding China’s DeepSeek AI technology. With its disruptive potential in the U.S. tech sector, the AI model has raised concerns about market overvaluation, affecting stocks and digital assets alike. This uncertainty has pushed investors to retreat from speculative markets, including cryptocurrencies.
President Trump’s executive order on crypto policy was intended to provide clarity, but its incremental approach failed to meet traders’ high expectations. While promising regulatory advancements, the lack of immediate action dampened sentiment. Crypto-friendly initiatives, including the potential for a national policy framework, will likely have a more profound impact in the long run.
Despite the current downturn, crypto enthusiasts remain optimistic about the industry’s future. Bitcoin’s significant growth since Trump’s election underscores the resilience of digital assets. As global markets adjust to economic and technological shifts, cryptocurrencies could play a pivotal role in driving innovation and financial inclusion.
The crypto market remains at a crossroads, with short-term challenges stemming from macroeconomic uncertainty and technological disruption. However, its long-term potential remains robust, driven by innovation and increasing mainstream acceptance.
“Markets often overreact to news, but those who see the bigger picture know that volatility is just a part of the journey to growth.”
