Bitcoin Falls to $98,852 Amid Tech Selloff and Fed Rate Concerns

Bitcoin experienced a significant decline on Monday, dropping below the $100,000 mark to an eleven-day low of $98,852.17, marking a 6% decrease from the previous day. This downturn is part of a broader selloff in the technology sector, influenced by multiple factors.

A key catalyst for the tech sector's decline is the emergence of Chinese AI company DeepSeek, which has introduced a free, open-source AI model poised to rival existing technologies. This development has raised concerns about the competitive landscape, particularly regarding Western tech companies' market positions.

Additionally, market sentiment has been affected by expectations surrounding the U.S. Federal Reserve's monetary policy. Investors anticipate that the Federal Reserve will maintain higher interest rates for an extended period, contributing to the selloff in riskier assets, including cryptocurrencies. The Federal Reserve's meeting this week is expected to keep rates on hold, further influencing market dynamics.

Analysts also point to profit-taking activities ahead of the Federal Reserve's announcement on interest rates as a factor driving the selloff. Despite the current downturn, some cryptocurrencies have experienced significant gains earlier in the year, fueled by optimistic market sentiment regarding favorable policies under President Donald Trump's second administration.

The recent decline in Bitcoin's value reflects the complex interplay of technological advancements, monetary policy expectations, and investor behavior. As the market continues to respond to these factors, stakeholders remain vigilant, monitoring developments that could influence the trajectory of cryptocurrencies and the broader technology sector.