Bitcoin Hits $100,000, but Altcoins Plunge Up to 11% Amid DeepSeek Impact
Cryptocurrencies kicked off the week with sharp declines, with Bitcoin initially dropping below $100,000 before recovering slightly to just over $101,000.
Meanwhile, altcoins plunged by as much as 11.1%, led by Avalanche, followed by SUI (-10.6%) and Hedera (-10.1%).
Adding to investor concerns over Trump’s policies and their impact on the future of cryptocurrencies, a new technological competitor has emerged from China. The startup DeepSeek has launched a highly competitive AI model challenging OpenAI, sparking market uncertainty over its potential impact on U.S. dominance in the tech sector.
Interest Rates Decision and Bitcoin Reserve
Another key factor weighing on the market is the upcoming Federal Reserve (Fed) meeting, scheduled for Wednesday, January 29. While the central bank is expected to keep interest rates unchanged, investors are closely watching the Fed’s tone in the wake of Trump’s inauguration.
The president’s executive order, which calls for better cryptocurrency regulations and the potential creation of a national digital asset reserve, made no explicit mention of Bitcoin. This omission has fueled skepticism over whether Trump will fulfill his promise to support such a reserve.
AltCoin Performances
The broader cryptocurrency market is also facing significant losses, with declines of up to 14%, led by SUI, followed by Hedera (-12.8%), Avalanche (-12.3%), and Stellar (-11.4%). This scenario highlights the growing pressure on risk assets amid economic uncertainty and intensifying global technological competition.

