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- Bitcoin price dips below the $100,000 price level.
- Analysts offer a key indicator of what caused this price dip.
- The price of BTC will likely fall lower before its next ATH is set.
The price of Bitcoin fell below the $100,000 price level leading to BTC price hitting 5-digit price values once again. The pioneer crypto asset is down from its peak of $109,114 which was set during Donald Trump’s Presidential inauguration. Analysts are trying to pinpoint a specific reason behind this dump.
Why Bitcoin Price is Down Today
To highlight, one post notices how the BTC price drop occurred around the same time as DeepSeek’s launch. The new Chinese AI app intends to disrupt the technology sector and has already captured investor attention by matching the capabilities of US-based OpenAI’s technology while using fewer computer chips, thus offering a significant cost and efficiency advantage.
The decline is accelerating:
— The Kobeissi Letter (@KobeissiLetter) January 27, 2025
Nasdaq 100 futures are now down -330 POINTS since the market opened just hours ago as DeepSeek takes #1 on the App Store.
This is how you know DeepSeek has become a major threat to US large cap tech.
The stock market does not lie.
(a thread) pic.twitter.com/NLwK1oytaz
The app has quickly climbed up the App Store raising concerns about U.S. tech companies’ market position. As we can see from the post above, Kobeissi says this change may have been the cause of a -330 points drop in Nasdaq 100 futures. Moreover, the crypto market tends to get influenced by tech stocks and this could be a huge factor.
What Next for Bitcoin Price
Several prominent altcoins like SOL have fallen alongside Bitcoin. Meanwhile, some analysts are expecting even greater dips possibly to the $70,000 price range before Bitcoin will likely rally and move towards a $120 short-term target and a $250,000 long-term target. As usual, unexpected market changes have yet to shake the faith of seasoned analysts.
#Bitcoin is showing striking similarities to the 2015-2018 cycle. Historically, it was around this point when $BTC went parabolic. pic.twitter.com/VLD8ehzj6K
— Ali (@ali_charts) January 26, 2025
As we can see from the post above, long-time and experienced crypto traders are not shaken by the regular ups and downs of this volatile market. The post above highlights how Bitcoin is showing a striking similarity to the 2015-2018 bull cycle and marks that this is the same phase last cycle when BTC price went parabolic. Thus, the post concludes with bullish BTC action soon despite the ongoing dip.