Bitcoin Dips Below $100,000 Amid Tech Stock Sell-Off

Bitcoin briefly fell under $100,000 early Monday, touching $97,900 before recovering to $101,295. This 3.51% drop reflects broader market turbulence as global tech stocks faced significant sell-offs.

The cryptocurrency, which recently surged past the $100,000 milestone following Donald Trump’s return to the White House, had been buoyed by regulatory optimism. Last week, Trump signed an executive order paving the way for crypto-friendly policies and a national cryptocurrency reserve, fulfilling campaign promises.

However, Bitcoin couldn’t escape the ripple effects of global market concerns. U.S. stock futures fell sharply as investors reacted to news from Chinese AI startup DeepSeek, which unveiled a large language model (LLM) rivaling OpenAI’s ChatGPT and Meta’s Llama 3.1. Built for under $6 million using less advanced Nvidia chips, the announcement raised concerns about the sustainability of premium semiconductor demand.

Nasdaq futures plunged 4%, Dow Jones futures dropped over 300 points, and S&P 500 futures declined 2%. Nvidia, a key player in the AI boom, faced intensified scrutiny as analysts warned of DeepSeek’s potential to disrupt U.S. tech dominance.

Investors are also closely watching the Federal Reserve’s interest rate decision, expected on Wednesday. Fed Chair Jerome Powell previously signaled a cautious approach to rate cuts, balancing inflation control with labor market strength. The federal funds rate remains at 4.25%-4.50%, following aggressive reductions last year.

Bitcoin’s volatility underscores its sensitivity to macroeconomic trends, with both regulatory developments and global market dynamics shaping its path forward.