Bitcoin under pressure at $100,000: five key points this week

As bitcoin slowly recovers from its drop below $99,000 earlier today, crypto investors are worried, and here are 5 things they absolutely need to know about BTC this week.

Bitcoin (BTC) kicked off the last week of January with a notable dip below the $100,000 mark, hitting its lowest level in 10 days. While the crypto queen has since recovered slightly to hover around $100,000, investors are navigating a climate of escalating tension! From the volatility gripping financial markets to the looming uncertainty from the Federal Reserve… Here are 5 things to know about bitcoin this week.

Bitcoin feels the heat at $100,000: 5 key points this week

As bitcoin gradually recovers from its drop to lows of $99,000 earlier today, crypto investors are on edge, and here are 5 things they absolutely need to know about BTC this week.

Bitcoin impacted by falling US stocks futures

Bitcoin lost up to 4% on January 27, reaching 10-day lows of around $98,000. This decline mirrors market jitters, which were notably fueled by a drop in futures contracts on US stocks. In the meantime, some traders express optimism, suggesting that this correction could pave the way for a substantial liquidity recovery ahead of a rebound.

DeepSeek joins the ChatGPT stock race

A Chinese AI startup by the name of DeepSeek is setting technology investors on edge. Gaining immense popularity and reportedly boasting competitive advantages, DeepSeek has triggered a drop in the stock prices of American tech giants, which is also impacting the crypto market, given its frequent correlation with high-risk stocks.

The Fed decision on the horizon

The Federal Reserve (Fed) is set to announce its decision on interest rates this week, and while a rate cut is unlikely, it could bolster investor confidence. Anticipation centers on economic data, including Q4 GDP and the PCE index, which serves as the Fed’s preferred inflation metric.

Derivatives markets maintain caution

Even prior to this dip, traders in the bitcoin derivatives markets have adopted a bearish stance. The price difference between the spot market and futures contracts on Binance is at its lowest level since December, indicating a sense of caution.

Crucial bitcoin price points to watch

As bitcoin now struggles to hold $100,000, critical support levels, notably at $96,000 and $90,000, are essential to watch. A drop below these thresholds could lead to unrealized losses for many short-term investors.

Which path will bitcoin take after January 29?

Following the FOMC meeting on January 29, 2025, the trajectory of bitcoin could be influenced by the Fed's decision on interest rates. If the Fed maintains a strict monetary policy, BTC might continue to slide, potentially hitting price points around $90,000. However, a favorable announcement could propel BTC upward, with some projecting price ranges of up to $150,000 by the end of the year. Investors will be keeping a close eye on economic signals to adjust their strategies accordingly.

While BTC just hit several major highs in 2025, it is still facing a period of heightened volatility with a recent dip below the $100,000 mark. Investors should remain attentive to crucial support levels and economic signals, as these factors will ultimately dictate bitcoin's future trajectory.

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