Bitcoin Surges Past $103K Amid FOMC Meeting; Altcoins Face Volatility

Bitcoin Price Tops $103K Amid FOMC Meeting; Altcoins Face Volatility

Bitcoin (BTC) surged past the $103,000 mark on Tuesday, January 28, 2025, as investors engaged in dip-buying following recent losses. The world's largest cryptocurrency had slumped below the key $100,000 level the previous day but swiftly rebounded, driven by bargain hunters.

However, traders remained cautious due to lingering concerns over artificial intelligence (AI) and the potential for a renewed market rout. The recent release of China's DeepSeek R1, an AI model with capabilities similar to ChatGPT but using older hardware and a fraction of the budget, has raised questions about stretched spending on AI and pressured major technology stocks, particularly NVIDIA Corporation (NASDAQ:NVDA). This rout triggered a risk-off move across global markets, which spilled over into the crypto market.

U.S. President Donald Trump's plans for more friendly regulation of cryptocurrencies also remained a focus for investors. Last week, Trump signed an executive order calling for a crypto regulatory framework, but markets took little support from the move, as the order did not mention Bitcoin even once. Additionally, Trump threatened to impose universal trade tariffs, which further pressured risk appetite.

Despite the uncertainty, broader crypto prices firmed on Tuesday, tracking gains in Bitcoin. World no.2 crypto Ether (ETH) rose 2.2% to $3,209.99, while XRP rose 5.7% to $3.1040. Altcoins also recovered, with Cardano (ADA), Solana (SOL), and Polygon (MATIC) rising between 0.2% to 5%. Meme tokens, such as Dogecoin (DOGE), also gained, with DOGE adding 4.3%.

MicroStrategy, a software company, expanded its Bitcoin reserves by acquiring an additional 10,107 BTC ahead of Monday's decline. The company's latest purchase marks its 12th consecutive week of BTC buys, with a total of 471,107 BTC currently valued at around $47 billion. Michael Saylor, MicroStrategy's Executive Chairman,