Bitcoin Hits 11-Day Low Amid Tech Selloff.
Bitcoin fell below the $100,000 mark on Monday, hitting its lowest point in 11 days. Analysts attributed the decline to a wave of caution sweeping the markets, triggered by the surging popularity of a Chinese artificial intelligence model, which sparked a selloff in Western AI-related stocks.
The world’s largest cryptocurrency struggled to maintain momentum last week. A rally that had seen Bitcoin surpass $100,000 following the election of U.S. President Donald Trump eventually lost steam, failing to build on earlier gains.
As of 1156 GMT, Bitcoin was trading at $98,852.17, down approximately 6% for the day. The cryptocurrency had dropped sharply in early trading, reaching its lowest level since January 16.
The broader tech sector also saw significant losses, with traders growing concerned that the rise of Chinese AI startup DeepSeek could challenge the dominance of Western firms in the artificial intelligence space. Some observers have referred to this development as AI’s “Sputnik moment,” drawing parallels to the Soviet Union’s launch of its satellite in the late 1950s, which marked the beginning of the space race.
Geoffrey Kendrick, global head of digital asset research at Standard Chartered, added that the drop in Nasdaq futures had negatively impacted cryptocurrency markets. However, he also pointed to disappointment over the Trump administration's cryptocurrency policy as a key factor contributing to the selloff. Last week, after taking office, President Trump failed to address cryptocurrency in his day-one announcements, leaving many investors dissatisfied. In a subsequent executive order on Thursday, Trump announced the creation of a working group to draft new regulations for cryptocurrency and explore the idea of a crypto stockpile. However, the U.S. Securities and Exchange Commission (SEC) blocked accounting guidance that the crypto industry had hoped would spur wider adoption.
The uncertainty surrounding interest rates also weighed on riskier assets. Thomas Puech, CEO of digital asset hedge fund Indigo, explained that the prospect of interest rates remaining high for an extended period had further strained market sentiment.
U.S. Federal Reserve policymakers are set to meet this week, and it is expected that they will keep interest rates on hold, a decision that could further impact the performance of risk-sensitive assets like Bitcoin.
