The price of the popular cryptocurrency Bitcoin fell to an 11-day low on Monday, dropping to $98,852, nearly 6% lower than the previous day. The news was reported by Reuters.
According to analysts, the rise in popularity of Chinese artificial intelligence (AI) firm Deepseek has triggered caution in Western AI-related stock markets, which is one of the factors contributing to the decline in Bitcoin’s price.
Last week, Bitcoin’s value surpassed $100,000, driven in part by former U.S. President Donald Trump’s election victory. However, subsequent announcements from the Trump administration regarding cryptocurrency left some investors disappointed, leading to further downward pressure on Bitcoin.
Additionally, the tech stock market has also faced a downturn. Investors are increasingly concerned that the progress of China-based Deepseek could threaten the dominance of Western companies in the AI sector. Furthermore, the prospect of interest rates remaining high for an extended period has added pressure on risky assets.
Analysts suggest that the current market is volatile, and price fluctuations for Bitcoin and other cryptocurrencies are likely to continue in the coming days.
