Bitcoin briefly dipped below $100,000 on Monday, falling as low as $97,740, before recovering to around $101,518.
The drop came as news of DeepSeek, a Chinese AI startup, sparked a selloff in tech stocks, affecting broader investor sentiment.
Despite speculation, DeepSeek‘s AI advancements have “nothing to do with Bitcoin,” according to Jean Rausis, co-founder of SMARDEX.
Bitcoin’s price movements have been increasingly tied to tech stocks, with analysts noting a strong correlation between Bitcoin and the Nasdaq Composite.
The correlation, which reached a six-month high of 0.5, has led to Bitcoin’s price being affected by shifts in the tech market.
Despite the drop, Bitcoin remains about 6.8% away from its record high of $109,225 reached on January 20.
Analysts suggest that Bitcoin’s consolidation continues, with hopes for a breakout tied to potential actions around a strategic Bitcoin reserve by the U.S. government.
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