The cryptocurrency market has experienced a downturn in January, with Bitcoin and other digital assets suffering losses attributed to a broader sell-off in the technology sector. Bitcoin's price fell 3% to $101,400, and the CoinDesk 20 index recorded a 7% decline. The tech-heavy Nasdaq composite index also faced a downturn due to concerns about a Chinese startup's competitive artificial intelligence model. This news sparked fears about Big Tech's spending on AI models and data centers, leading to a sell-off in tech stocks. Shares of major cryptocurrency exchanges and Bitcoin mining companies also fell. The correlation between the cryptocurrency market and the tech sector remains strong. Liquidations among traders who had bet against a downturn further drove market volatility. Traders were disappointed with President Trump's recent executive order on cryptocurrency. The market is now focused on the upcoming Federal Reserve meeting. Market strategists reassure investors that the overall trend in Bitcoin remains positive.



Other News from Today