Bitcoin dips back under $100,000 on risk selloff

Chipmakers have been the new poster boy for stocks this past year and they are being smashed to start the new week. That is leading to a broader risk rout with cryptocurrencies also feeling the pinch. People are pointing the finger to DeepSeek, a Chinese AI startup, which claims to be able to run on-par models to US AI firms at 30 times less cost. While that is leading to a selloff in tech shares, Bitcoin is also dragged down back under $100,000 currently.

The bigger picture shows a consolidation phase for Bitcoin as it continues to hold above the $90,000 to $92,000 range but unable to firmly break above $108,000 since December.

As such, the drop back below $100,000 isn’t too big of a blow. It’s not the most ideal for buyers in trying to get the upside momentum back again but they’re not out for the count either yet.

It’s been a volatile start to the year for Bitcoin and with Trump being in charge now, it’s surely going to be quite the ride in trading this year. I think it will be interesting to see if the cryptocurrency does start to look like it could crack lower, is Trump going to say something to rescue it?

This article was written by Justin Low at www.forexlive.com.