Bitcoin Falls Below $100,000 Amid Caution in Markets

LONDON (Reuters) – Bitcoin fell below $100,000 on Monday, reaching its lowest point in 11 days. Analysts attributed this decline to a wave of caution following 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 gain momentum last week after a rally had seen it rise above $100,000 in the wake of U.S. President Donald Trump’s election.

As of 1156 GMT, Bitcoin was priced at $98,852.17, down approximately 6% for the day, having sharply dropped during early trading to hit levels not seen since January 16.

Technology stocks took a hit as traders expressed concern that Chinese AI startup DeepSeek could challenge the dominance of Western companies in the sector. This development was dubbed AI’s “Sputnik moment,” referring to the historic satellite launch by the Soviet Union that initiated the space race in the late 1950s.

According to eToro analyst Simon Peters, Bitcoin’s losses seem to stem from risk-off sentiment in the markets, influenced by the news regarding DeepSeek.

Geoffrey Kendrick, global head of digital asset research at Standard Chartered, noted that a decline in Nasdaq futures negatively impacted crypto markets. Disappointment over the Trump administration’s announcements regarding a cryptocurrency stockpile had also increased the risk of a significant selloff in digital assets.

Crypto was notably absent in Trump’s day-one announcements. However, an executive order created a working group to draft new crypto regulations and explore a cryptocurrency stockpile, while the SEC rescinded accounting guidelines that had impeded crypto adoption.

Additionally, the expectation of prolonged higher interest rates has further pressured riskier assets, according to Thomas Puech, CEO of digital asset hedge fund Indigo. U.S. Federal Reserve policymakers are scheduled to meet this week and are anticipated to maintain interest rates at current levels.