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Bitcoin Plunges Below $99K on Binance Amidst Global Uncertainty

Coin WorldMonday, Jan 27, 2025 3:58 am ET

1min read

Bitcoin Price Plunges Below $99,000 on Binance's BTC USDT-PERP Trading Pair

Bitcoin (BTC) prices have taken a significant tumble, falling below the $99,000 mark on the BTC USDT-PERP trading pair on Binance. According to market data, the cryptocurrency has experienced a 24-hour decline of 5.75%.

The drop in price comes amidst a backdrop of global economic uncertainty and geopolitical tensions. Traders are taking profits ahead of the first U.S. FOMC meeting this year, scheduled for later this week, and are also digesting information about the cost and capabilities of China-based AI stalwart DeepSeek, which threatens an otherwise costly narrative spearheaded by OpenAI.

Traders expect no indications of a rate cut at the two-day FOMC meeting, which has typically impacted bitcoin prices as investors either prefer or move away from risk assets. Ben El-Baz, managing director of HashKey Global, told CoinDesk in a Telegram message that U.S. economic data shows less need for a federal interest rate cut in the near term, but concerns over trade wars and tariffs linger.

BTC dropped nearly 6% from a Sunday high of over $105,000, with a steep drop coming as Asian markets opened Monday. This came despite a major catalyst on Friday, when U.S. President Donald Trump ordered the creation of a crypto policy group to advise and drive the country's industry within six months.

The drop tracked a fall in U.S. stock indices, whose movements bitcoin tends to mirror, with futures of the S&P 500 and Nasdaq 100 down as much as 2.15% on Monday ahead of the market open. Much of the concern draws from a possible overvaluation in U.S. tech companies as DeepSeek's latest AI model is significantly cheaper to produce and was built using open-source technology that is easy to access.

As CoinDesk reported Monday, data from DeepSeek posted on Hugging Face, a forum of the AI industry, shows that its model outperforms OpenAI, all while being built on a budget of $6 million and a fraction of the Graphics Processing Units (GPUs) that OpenAI uses – which recently closed a $6.6 billion

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