Bitcoin drops over 3% amid tech stock sell-off

Bitcoin fell 3% to $100,776 as tech stock sell-offs and market volatility increase, impacting cryptocurrencies.

Cryptocurrencies experienced a significant decline at the start of the last week of January.

This downturn follows a previous record peak and is largely influenced by a sell-off in technology stocks linked to the Chinese startup DeepSeek.

Bitcoin’s price fell by 3% to $100,776.81, with earlier lows of $97,750. The CoinDesk 20 index, which tracks a broader range of cryptocurrencies, dropped by 7%.

The Nasdaq also suffered, declining more than 3%, leading to falls in shares of major crypto firms. Coinbase and MicroStrategy saw declines of about 6% and 4%, respectively, while Bitcoin mining companies faced heavier losses. Core Scientific shares fell by 28%, Terawulf by 25%, and Iren by 22%.

Geoff Kendrick from Standard Chartered noted that the relationship between digital assets and the tech sector is strong, pointing to the correlation between Bitcoin and Nasdaq performance.

In the last 24 hours, over $250 million in long liquidations in Bitcoin occurred, as traders using leverage were forced to sell their assets to cover losses. This was exacerbated by mixed reactions to an executive order on crypto from President Trump.

Investors are also cautious ahead of the Federal Reserve meeting, hoping for a more accommodative stance but fearing a lack of dovish policies.

Despite the recent volatility, some analysts suggest there is nothing fundamentally bearish about Bitcoin’s current price action.