Bitcoin (BTC) experienced a drop in price to under $99,000 as traders took profits ahead of the upcoming U.S. Federal Open Market Committee (FOMC) meeting and concerns over the impact of China-based AI company DeepSeek on the U.S. tech sector. Traders do not expect any indications of a rate cut at the FOMC meeting, which typically affects bitcoin prices. The drop in BTC's price was also influenced by a fall in U.S. stock indices. DeepSeek's AI model, which outperforms OpenAI at a fraction of the cost, threatens the established narrative of needing vast computational resources for AI innovation and could impact the competitive edge and valuations of U.S. tech firms. Traders are loading on options to protect against further downside in BTC's price. Overall, the market is expected to remain range-bound until there is more clarity on the Fed's upcoming policy decisions.



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