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Bitcoin Faces Volatility Amid DeepSeek AI Disruption
Bitcoin briefly dipped below $100,000 following a global tech sell-off triggered by DeepSeek’s AI advancements. Despite the turbulence, BTC rebounded above $102,000, reinforcing its resilience in volatile markets.
What we will talk about today...
Bitcoin Awaits FOMC Decision Amid $103K Price Consolidation
Bitcoin Faces Volatility Amid DeepSeek AI Disruption
Bitcoin’s Drop Below $75K Unlikely Before April, Says Analyst

Bitcoin stabilizes above $102,000 as markets brace for the FOMC meeting. Analysts anticipate volatility based on Fed Chair Powell’s statements, with potential downside to $94K or a rally past $110K.
I could see one more stab down before FOMC tbh.
$BTC
— Byzantine General (@ByzGeneral)
4:11 PM • Jan 28, 2025
Main Points:
Bitcoin remains above $102,000 following a brief dip below $100K.
The Federal Reserve is expected to keep interest rates steady at 4.25%–4.50%.
Analysts see BTC potentially retesting $94K–$92K before the FOMC meeting.
A dovish Fed stance could push BTC beyond $110K, entering a new price discovery phase.
Trump’s pressure for rate cuts may influence market expectations.
Detailed Insights:
FOMC Meeting Impact: Market sentiment hinges on Powell’s tone—hawkish remarks may trigger bearish volatility.
Support & Resistance Levels: Analysts highlight $94K as a key support zone, with $107K as a breakout target.
Trump’s Influence: The new administration calls for rate cuts, though the Fed remains independent.
Market Sentiment: Cooling inflation metrics fuel speculation about potential rate reductions in 2025.
Price Discovery Potential: A confirmed break above $107K could propel BTC to fresh all-time highs in February.
📈📉 Next week could set the tone for the rest of the year
Next week is a big one for the US stock market, from a historical statistics perspective.
I'm talking about something called the "January Barometer".
There is a strong correlation between performance in January and… x.com/i/web/status/1…
— Tomas (@TomasOnMarkets)
4:09 PM • Jan 26, 2025
Bitcoin’s next move depends on the FOMC outcome. Traders watch for signals on rate policy shifts that could drive the next major market move.

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Bitcoin Faces Volatility Amid DeepSeek AI Disruption
Bitcoin briefly dipped below $100,000 following a global tech sell-off triggered by DeepSeek’s AI advancements. Despite the turbulence, BTC rebounded above $102,000, reinforcing its resilience in volatile markets.
Main Points:
DeepSeek AI Impact: The Chinese AI startup’s latest model, DeepSeek-R1, disrupted markets, challenging US AI dominance and triggering a tech stock downturn.
Market Correlation: Bitcoin’s movement remains linked to Nasdaq and tech stocks, amplifying its sensitivity to macroeconomic shifts.
Resilient Recovery: BTC recovered above $102,000, indicating continued institutional confidence and long-term investor interest.
Expert Perspective: Financial analysts stress Bitcoin’s long-term strength, urging strategic investment over panic selling.
Detailed Insights:
AI Disruption: DeepSeek-R1’s success intensified competition in AI, unsettling major US tech stocks, including Nvidia.
Bitcoin’s Reaction: BTC followed market sentiment, briefly falling but quickly rebounding above key support levels.
Institutional Outlook: Long-term investors view Bitcoin as a hedge against inflation and portfolio diversifier despite short-term volatility.
Historical Trends: Bitcoin has repeatedly recovered from downturns, including the 2018 crash and the 2022-2023 bear market.
Bitcoin’s fundamentals remain strong, and while volatility persists, strategic investors see downturns as entry opportunities rather than threats.

₿itcoin reached $102,436. -0.46%
♢Ethereum reached $3,130. -2.07%

Despite recent volatility, analysts suggest Bitcoin has less than a 10% chance of dropping below $75,000 before April. Market trends and macroeconomic factors continue to shape BTC’s trajectory.
Main Points:
Bitcoin’s probability of falling below $75K has increased slightly to 9.2%, says analyst Sean Dawson.
Recent volatility was triggered by a broader market downturn linked to DeepSeek’s AI model launch.
BTC remains closely tied to macroeconomic shifts and investor sentiment.
Arthur Hayes predicts a potential pullback to $70K–$75K, followed by a strong rebound to $250K by 2025.
Detailed Insights:
Low Probability of Major Drop: Analyst Sean Dawson notes a 9.2% probability of BTC falling below $75K, up from 7.2%.
Market Volatility Impact: Bitcoin dipped 6.5% to $97,906 but quickly rebounded to $102K, indicating strong support.
Macroeconomic Influence: Analysts highlight BTC’s increasing correlation with broader financial markets and economic trends.
Potential Pullback Prediction: Arthur Hayes foresees a temporary decline, potentially sparking a liquidity-driven surge to $250K.
Bitcoin’s future remains uncertain, but analysts suggest that any significant drop is unlikely before April, with strong recovery potential ahead.

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This article is not financial advice. Market conditions can change rapidly, and past performance does not guarantee future results