Bitcoin’s Drop Linked to Tech Sector Decline, Not DeepSeek AI News

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.