Trump and DeepSeek tariffs shake Bitcoin

The tariff impasse between the US and Colombia, together with the rise of the Chinese startup DeepSeek, generate inflationary fears and affect the crypto sector. What's next for BTC?

The price of Bitcoin fell 2.86% this Monday, standing at USD 99,680, due to the trade tension between the US and Colombia, and the emergence of the Chinese artificial intelligence startup DeepSeek. These factors revived inflationary fears and affected market sentiment, while investors analyze the impact on interest rates and the future of digital assets.

Bitcoin pierced the dynamic support of the EMA25 at $100,600, reaching a low of $97,777 / Tradingview

Tariffs against Colombia generated fear

President Donald Trump's announcement to impose 25% tariffs on Colombia, after President Gustavo Petro's refusal to accept migrant flights, generated uncertainty in the markets. The tariffs could boost inflation, which would complicate the Federal Reserve's (FED) plans to cut interest rates. A high-rate scenario benefits the dollar but hurts assets like Bitcoin, which explains part of the 2.86% drop recorded this Monday.

DeepSeek: The Chinese startup that challenges Silicon Valley

The emergence of DeepSeek, a Chinese artificial intelligence startup, also contributed to market volatility. Its model, DeepSeek-R1, which outperforms previous OpenAI models at a lower computational cost, is gaining notoriety in the technology and financial sector. This advance represents a challenge to Western dominance in AI and generated losses in the S&P 500 index, which indirectly impacted the crypto sector. Some investors sold Bitcoin positions when they saw the impact of DeepSeek.

Bitcoin tests key supports: Will the bullish sentiment continue?

During the day, Bitcoin pierced the dynamic support of the EMA25 at $100,600, hitting a low of $97,777, close to the EMA50 at $97,937. Although the trading volume exceeded the 25-day average, indicating seller dominance, the price managed to bounce and stay above the EMA50, suggesting that the medium-term bullish sentiment still prevails.

The combination of geopolitical tensions, inflation fears, and technological advancements created a volatile scenario for Bitcoin on Monday. As investors monitor the FED's decisions and the impact of DeepSeek on the markets, the cryptocurrency struggles to maintain its key levels.

Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial, investment, or legal advice. Please do your research and consult with a professional before making any financial decisions.