Bitcoin briefly plunged below $98,000 amid tech market turmoil sparked by DeepSeek’s launch but swiftly rebounded. A rally, fueled by MicroStrategy’s aggressive Bitcoin accumulation and record crypto inflows, has reignited optimism for a sustained bull run.
After a period of extreme euphoria following Trump’s return to the White House, Bitcoin experienced a sharp correction, falling below $98,000. This sudden drop—nearly 10%—caught many investors off guard, just as it seemed the market had overcome major regulatory hurdles under the new U.S. administration.
Investor confidence in the crypto market was once again tested, but the downturn lasted only a single session: BTC/USD quickly rebounded, trading well above $100,000.
Is there still reason to be optimistic about reaching new all-time highs today?
Factors Behind the Bitcoin Decline: The Role of the Tech Market
One of the key drivers of Bitcoin’s decline was turmoil in the tech sector, triggered by the launch of DeepSeek, an open-source artificial intelligence model designed to significantly reduce the cost of scaling AI applications.
While this innovation represents a major breakthrough for the tech industry, it has also raised investor concerns, leading to a sell-off in tech stocks and indirectly impacting the cryptocurrency market. The correlation between Bitcoin and the tech sector is well established: when sentiment towards technology weakens, cryptocurrencies often follow suit. This connection was evident once again, with BTC/USD dragging down the entire decentralized market.
Reasons Behind Bitcoin’s Recovery
Despite the sharp decline, the market showed remarkable resilience. The dip was quickly bought up, indicating strong demand for Bitcoin in this macroeconomic environment. A key player in the rebound was MicroStrategy, a company renowned for its aggressive Bitcoin accumulation strategy. Recently, MicroStrategy announced a stock offering to raise capital for "corporate purposes."
The offering includes issuing 2.5 million perpetual strike preferred shares. At the same time, the company confirmed the acquisition of more than 10,000 BTC for approximately $1 billion, at an average price exceeding $105,000 per Bitcoin. As a result, MicroStrategy now holds over 470,000 BTC at an average cost of just over $64,000 per unit.
The retail investor segment also played a significant role in Bitcoin’s recovery. Confidence in the Trump administration and its economic policies appears to have driven new capital inflows into the cryptocurrency market. Over the past two weeks, the crypto market has recorded nearly $2 billion in net inflows, reflecting renewed enthusiasm among retail investors. Trump’s proposed executive orders aimed at stimulating economic growth and fostering innovation continue to fuel optimism in the decentralized sector.
What Lies Ahead for BTC/USD?
Despite the recent correction, Bitcoin has demonstrated remarkable resilience, supported by strong institutional and retail demand. Optimism surrounding Trump’s economic policies provides additional market support, yet technological and macroeconomic challenges remain key factors to monitor moving forward.
Original article published on Money.it Italy 2025-01-30 09:13:05. Original title: Analisi Bitcoin: dopo i $98K si torna ai massimi. Buoni auspici per una bull-run?
