Bitcoin dipped below the $100,000 mark on Monday, hitting its lowest level in 11 days as market sentiment turned cautious. At 11:56 GMT, the cryptocurrency was trading at $98,852.17, marking a 6% decline for the day after touching its weakest point since 16 January during early trading.
The downturn comes amid growing concerns over the rise of Chinese artificial intelligence startup Deepseek, which has spurred a selloff in Western AI-related stocks. Investors have been closely watching developments in the AI sector, with fears that increased competition from China could impact technology markets and, by extension, digital assets.
Adding to the negative sentiment, the cryptocurrency market has been underwhelmed by the initial policy approach of the Trump administration. While President Trump recently signed an executive order to establish a working group tasked with drafting new cryptocurrency regulations and assessing a potential crypto stockpile, the market reaction has been muted.
Analysts suggest that while the executive order signals a willingness to engage with the digital asset sector, the lack of immediate, concrete measures has left investors uncertain about the administration’s stance on crypto. “The market was expecting more decisive action or a clear regulatory framework, but so far, the approach has been cautious,” one analyst noted.
Bitcoin’s latest dip follows a strong rally earlier this month, which saw the cryptocurrency breach the $100,000 threshold. Despite the recent decline, many market participants remain optimistic about its long-term trajectory, with institutional interest and regulatory clarity expected to play a crucial role in shaping future price movements.
As the AI sector continues to evolve and geopolitical factors influence financial markets, cryptocurrency investors are likely to remain on edge, closely monitoring policy developments and technological shifts that could impact digital assets.
