TechFlow news, January 27 — According to The Block, Bitcoin dropped below $100,000, hitting its lowest level since January 16. This sell-off was primarily driven by two factors: market caution ahead of the upcoming Federal Reserve FOMC meeting this Thursday, and turbulence in the tech sector triggered by breakthroughs from the DeepSeek AI model.
Paul Howard, Senior Director at Wincent, said that if future macroeconomic data suggest rising interest rates, Bitcoin could potentially retrace to $70,000. DeepSeek’s open-source large language model, launched in December last year, was developed in just two months at a cost of less than $6 million. Its highly efficient development approach has been described by Marc Andreessen as the "Sputnik moment for AI." Morgan Brown, VP of AI Products at Dropbox, noted that DeepSeek has broken the notion that "only tech giants can play in AI," fundamentally disrupting the economic logic of AI development.
