Plunge to $100K Like Trump, Deepseek Rattles Risk Appetite by Investing.com

Investing.com- Bitcoin fell on Monday, tracking a broader decline in stock markets as US President Donald Trump’s threats shook risk appetite, while technology stocks were unsettled by disruptive new artificial intelligence from China.

Bitcoin has remained under pressure from ongoing uncertainty about what Trump’s crypto policies will entail, after the president announced new, albeit vague, plans to craft a regulatory framework for the industry.

Risk appetite was also pressured by the expectation of a Federal Reserve study meeting this week, where the central bank is widely expected to hold interest rates and strike a chord.

The broader risk-based markets took a plunge in Asian trading, with tech stocks under pressure from Deepseek, which recently released AI software it claims matches their rivals like ChatGPT in performance for a fraction of the cost. Losses in stocks appear to have turned on crypto.

It fell 4.4% to $100,557.5 at 00:10 ET (05:10 GMT).

Memecoin, which the president launched earlier in January, also slid on Monday after wiping out about 60% of its value since its post-launch peak.

Trump uncertainty

The risk appetite was completed by Trump’s threat to impose a 25% trade tariff on Colombia over refusal to comply with his position on deporting migrants. But Colombia’s government accepted Trump’s terms soon after his tariff threat, with the White House stating that the proposed tariffs were now on hold.

However, Trump’s move has raised concerns that he will make good on his threats to impose tariffs on other major economies, including Mexico, Canada and China.

But a bigger point of contention for Trump, especially for crypto markets, was that Trump did not mention Bitcoin in an executive order calling for better crypto regulations and a national reserve for digital assets.

This raised growing doubts about whether Trump would actually be able to deliver on Bitcoin reserve promises. Establishing the reserve through executive order would likely limit its scope, while any requirement for congressional approval of the reserve is expected to face opposition from conscientious lawmakers.

Today’s Crypto Price: Altcoins Track Bitcoin’s Losses, $Trump Gets Worse

Broader crypto prices fell on Monday, falling alongside Bitcoin as risk appetite remained subdued.

It performed the worst among major altcoins, sliding nearly 14% to $26,675. The token has now wiped out about 60% of its value since its post-launch peak of over $60, and has fallen steadily in the past week amid choppy trade.

Volatility in $trump has also spilled over into broader crypto markets, exposing sentiment towards the sector. The token — which recorded Trump’s billions in paper — has drawn questions about Trump’s ethics by using his influence to manipulate crypto markets.

World No.2 Crypto fell 5.8% to $3,148.51, while it slid 6.2% to $2.9369.

It slipped between 5% and 11%, while among tokens, it lost 9.4%.