- Last week, Trump told World Economic Forum attendees that, after the oil prices go down, I will demand the interest rates to drop quickly.
- In the week ending on January 26, Trump kept his campaign promises to make revamping crypto policy one of his government’s priorities.
- The market advisory service account of Kobeissi posted that, Nasdaq 100 futures are now low by -330 points.
The value of Bitcoin, along with other cryptocurrencies, has experienced a significant drop in recent days. This decline aligns with a broader market sell-off, reportedly sparked by the growing popularity of the China-based app, DeepSeek.
Bitcoin’s price has fallen below the $100,000 mark, a sharp decrease from its record high of approximately $110,000, which it reached shortly before the inauguration of U.S. President Donald Trump.
Bitcoin firmly correlated with the US stock market
The Chief Executive Officer of BlackRock, Larry Fink unveiled his discussions with sovereign wealth funds regarding purchasing Bitcoin. At the same time, crypto trader Arthur Hayes has alerted of an appearing “financial crisis” that he anticipates releasing fresh Federal Reserve stimulus measures.
Hayes, a cofounder of bitcoin as well as crypto derivatives pioneer posted on X arguing that I am calling for a $70,000 to $75,000 decline in bitcoin and a mini financial crisis. The price of Bitcoin went over $70,000 following the support of the election victory of Donald Trump in November.
At that time, the traders bet Trump would encourage the growth of Bitcoin as well as an overall crypto market. In the week ending on January 26, Trump kept his campaign promises to make revamping crypto policy one of his government’s priorities.
The priorities include making a bitcoin and cryptocurrency working group entrusted with offering new laws and exploring the building of a national cryptocurrency stockpile. The price of bitcoin is firmly correlated to the U.S. stock market, having bitcoin and crypto trading aligning with high-growth tech stocks that have skyrocketed.
A market analyst Adam Kobeissi posted on X that Risk off is the theme as DeepSeek scares investors. He also highlighted the crypto and bitcoin price sell-off that’s witnessed Ethereum rival Solana going down by 10%.
The market advisory service account of Kobeissi posted that, Nasdaq 100 futures are now low by -330 points since the market opened just hours ago as DeepSeek positions itself at first position on the App Store. This is how you know DeepSeek has become a significant threat to the large-cap tech of the United States.
Interest rates should drop all over the world- Trump
It is speculated that the Federal Reserve will leave interest rates on hold while it meets for its first policy meeting. Trump has also publicized his wish that he wants the Fed to take the interest rates down.
At the World Economic Forum, Trump also publicized to the attendees that, after the oil prices go down, I will demand the interest rates to drop quickly, and in addition, they should be going down all over the world.
At the same time, Hayes said he trusts that the Fed will recommence money printing that will send the price of Bitcoin to $250,000 by the end of 2025. The debt of the United States has gone up in the last few years, surpassing $34 trillion at the beginning of the last year.
