PANews reported on January 27 that QCP Capital, a Singapore-based crypto investment firm, said in a statement today that one week after Trump took office, as news of China's Deepseek continued to spread since the weekend, Bitcoin, along with other risk assets, fell back below $100,000. China's Large Language Model (LLM), with its cost-effectiveness and groundbreaking open source technology, has broken the United States' dominance in the field of artificial intelligence and posed a potential threat to the U.S. stock market. It is worth paying attention to what drastic measures the Trump administration will take to save the U.S. stock market.

As for Bitcoin, we do not foresee a significant rally until there is confirmation of the establishment of a strategic Bitcoin reserve. The Trump administration’s assessment of a “national digital asset reserve” is not enough to sustain the market’s recent optimism. Risk reversals have remained skewed toward bullish options since at least March, suggesting that the market is not expecting much until the end of the quarter.

Volatility and the VIX index continued to remain elevated on Friday as the market precariously awaits the Federal Open Market Committee (FOMC) meeting this Thursday, January 30. Despite today’s volatility, Bitcoin should remain relatively strong regardless of Thursday’s outcome as it remains within a familiar trading range.