Bitcoin Plunges Below $100K as US Stocks Tumble Ahead of FOMC Meeting
Monday, Jan 27, 2025 5:57 am ET
1min read Bitcoin Drops Below $100K as US Stocks Tumble Ahead of FOMC MeetingBitcoin (BTC) has broken below the $100,000 mark, coinciding with a broader market downturn that saw US stock futures tumble. The cryptocurrency is currently trading at $99,290, down 6% from its Sunday high of over $105,000. This decline comes ahead of the Federal Open Market Committee (FOMC) meeting, which is expected to provide clarity on policy decisions.The FOMC meeting, scheduled for January 28 and 29, is widely anticipated to maintain the current interest rate at 4.25% to 4.5%, according to the CME FedWatch tool. However, traders are actively hedging with $95,000 strike options, suggesting expectations of further downward movement.Bitcoin's price movement appears closely tied to traditional financial markets, particularly US stock indices. Futures trading for both the S&P 500 and Nasdaq 100 showed declines of up to 2.15% on Monday ahead of market opening, highlighting the increasingly interconnected nature of crypto and traditional markets.Adding to market pressures, developments in the artificial intelligence sector have sparked concerns about tech sector valuations. China-based AI company DeepSeek has revealed a new model that reportedly matches or exceeds OpenAI's capabilities while requiring substantially less investment and computational resources. This revelation comes at a time when OpenAI has sought trillions in funding and is part of the US Stargate project, which has attracted $500 billion in investments.Technical indicators suggest a weakening market structure. Bitcoin is currently trading below the 100-hour Simple moving average, and the MACD indicator shows increasing bearish momentum. Support levels are established around $100,500 and $100,000, with resistance levels noted at $102,200 and $104,000.Trading desk reports from Singapore-based QCP Capital highlight the market's cautious stance. "The desk observed growing interest in the Jan $95,000 strikes as the market scrambled for downside protection after BTC lost momentum during yesterday’s U.S. session," the firm reported.Recent price action has invalidated several bullish technical patterns, including the break below key moving averages. The market structure 
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