Bitcoin's Price Stagnates as U.S.-China AI Race Intensifies

Bitcoin's Price Trajectory Unlikely to Surge Before Reserve Plan Confirmation

Bitcoin (BTC) has experienced a decline below the $100,000 mark, dragging other risk assets down with it, according to a recent market observation by QCP. This downturn comes one week after President Trump's inauguration. Meanwhile, news about China's "Deepseek" large-scale language model (LLM) has been gaining traction, potentially posing a threat to the U.S.'s leading position in artificial intelligence and impacting the U.S. stock market.

QCP's analysis suggests that Bitcoin is not expected to see a significant price increase until the "Strategic Bitcoin Reserve" plan is confirmed. The previously proposed "National Digital Asset Reserve" assessment scheme by the Trump administration has not been sufficient to support bullish market sentiment in the short term. Risk reversal tendencies indicate that only bullish options (Calls) from March onwards have the upper hand, suggesting that the market does not anticipate much substantive progress before the end of this quarter.

However, with the looming threat of China's "Deepseek" to the U.S. market, it is not ruled out that President Trump may intervene and attempt to play the role of a "hero." Market volatility and the VIX index remain high, with investors maintaining a high level of caution ahead of the FOMC meeting on January 30th. Despite today's market fluctuations, Bitcoin is expected to maintain relative resilience and continue to fluctuate within a familiar range.

In unrelated news, Ohio has introduced a bill to establish a Strategic Bitcoin Reserve. The bill aims to secure state funds, combat inflation, and set standards for digital asset adoption. The legislation allows Ohio to invest 10% of its general fund, budget stabilization fund, and prizes trust fund into Bitcoin. The allocated funds are intended to maintain the financial capacity of state resources through uncertain economic periods.

The bill includes powerful custody measures to maintain secure control of funds, requiring holders of Bitcoin to manage their assets directly through self-custody systems or qualified custodial services for secure storage. The strategy minimizes digital asset dangers while promoting open accounting for state investment management. The bill uses the "digital asset" category to create technology independence and both minimize political obstacles and boost implementation speed.

Revised qualifications have been added to preserve excellent standards. The digital asset reserve requires candidates to hold a minimum average market