China AI Counterattack... Bloomberg "Bitcoin Decline Due to 'Deepseek'"

An analysis has emerged suggesting that the decline in Bitcoin (BTC) prices is linked to 'Deepseek', developed by a Chinese artificial intelligence (AI) startup.

Bloomberg reported on the 27th that "Bitcoin fell below $100,000 after U.S. President Donald Trump announced an executive order designating the virtual asset industry as a key driver of American innovation." The report highlighted the ongoing decline in Bitcoin prices as it fell below $100,000 on this day.

Bloomberg pointed to the impact of Chinese AI. Bloomberg stated, "Concerns are spreading that China's AI model Deepseek could disrupt the tech industry, leading to a sharp drop in U.S. stock futures indices." Jonathan Yalk, a senior trader at market maker Acheron Trading, told Bloomberg, "These concerns have had a ripple effect on the futures market and the virtual asset market as a whole."

The 'Trump effect' was also mentioned. Sean McNulty, head of Asia-Pacific derivatives at cryptocurrency brokerage FalconX, told Bloomberg, "The market got 90% of what it wanted from (Trump's) executive order," adding, "(However) most of it seems to be already priced in." He added, "If we don't establish reserves to immediately buy Bitcoin, we will inevitably disappoint the market."