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.
BTC/USD daily chart (Coinbase)
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?
