London (Reuters) – Bitcoin fell below $ 100,000 on Monday, reaching its lowest in 11 days, in a move from analysts attributed to a wave of caution after the growing popularity of a Chinese artificial intelligence model triggered a sale in actions related to Western AI.
The world’s largest cryptocurrency in the world had trouble making earnings last week, because a rally that had seen him exceed $ 100,000 after the election of US President Donald Trump did not calm down.
At 1156 GMT, Bitcoin was $ 98,852.17, down around 6% over the day, having fallen sharply at the start of negotiations to reach its lowest since January 16.
Technological actions have plunged because traders feared that the startup of Chinese AI Deepseek threatens the domination of Western companies in the sector, in a decision which called the “Sputnik moment” of AI, referring to launch by The former union of the Soviet Union of a satellite which marked the start of the race space in the late 1950s.
Bitcoin losses are “apparently motivated by a certain feeling of risk circulating in the markets currently due to Deepseek”, wrote Etoro Simon Peters analyst.
Geoffrey Kendrick, global manager of digital asset research at Standard Chartered, said that a drop in term contracts on the NASDAQ had harmed the cryptographic markets, but that this disappointment concerning the Trump Administration concerning a Stock of cryptocurrency had put digital assets more in danger of net sale.
Crypto failed to appear in Trump’s announcements of Trump after taking office last week, leaving some disappointed investors. In an executive decree Thursday, Trump created a working group to write new cryptography rules and explore a crypto stock, while Securities and Exchange Commission (SEC) increased the accounting directives which, according to the industry, had hampered the adoption of cryptography.
The perspective of interest rates remaining higher for longer, also harvested more risky assets, said Thomas Puech, CEO of Digital Asset Hedge Fund Indigo.
The decision -makers of the American federal reserve meet this week and should keep the interest rates pending.
(Report by Elizabeth Howcroft; edition by Amanda Cooper and Louise Heavens)
