Bitcoin (BTC) reclaimed $100,000 after a dramatic collapse on Monday, which saw the price plummet to a low of $97,766 before mounting a recovery. BTC’s recovery can be attributed to MicroStrategy expanding its Bitcoin holdings with its latest purchase, worth $1.1 billion. MicroStrategy Announces Latest Bitcoin (BTC) Purchase Michael Saylor’s MicroStrategy has announced the purchase of 10,107 BTC worth $1.1 billion at an average cost of $105,596 per BTC . The company’s latest acquisition takes its holdings to 471,107 BTC . The mean cost across MicroStrategy’s assets is $64,511, while the aggregate investment is just over $30 billion. MicroStrategy Executive Chairman Michael Saylor shared the news about the latest purchase on X, stating, “MicroStrategy has acquired 10,107 BTC for ~$1.1 billion at ~$105,596 per bitcoin and has achieved BTC Yield of 2.90% YTD 2025. As of 1/26/2025, we hodl 471,107 $ BTC acquired for ~$30.4 billion at ~$64,511 per bitcoin. $MSTR.” The company’s latest purchase highlights its belief in BTC and builds on its strategy to expand its holdings. MicroStrategy plans to put up 2,500,000 shares of their Series A Perpetual Strike Preferred Stock for investment. Proceeds from the offering will be utilized to support various corporate functions, sustain financial operations, and purchase more BTC . Each share of the stock will have a $100 liquidation preference and will feature fixed-rate cumulative dividend payments to stockholders. BTC, Traditional Markets, and DeepSeek Bitcoin (BTC) dipped below $100,000 for the first time since Donald Trump took office as global markets and tech stocks plummeted, reacting to growing competition in the AI sector. According to a report by QCP Capital, the Chinese LLM threatens US equity markets by disrupting US dominance in the AI field thanks to its cost-efficiency and open-source technology. It also highlights BTC’s growing correlation with traditional markets, reaching new year-to-date highs and highlighting the flagship cryptocurrency’s evolution into a major risk asset. According to the report, a shift in the equities market could trigger a domino effect on BTC and significantly increase volatility. An analyst summed up, stating, “A taste of this was seen on January 27 when concerns over surging popularity of a Chinese discount artificial intelligence model wobbled investors’ faith in the profitability of AI and sent equities falling.” Alvin Kan, the Chief Operating Officer at BitGet Wallet, stated, “The hype around DeepSeek and broader volatility in the US AI market has spooked investors, leading to a flight to safety. With the next Federal Reserve meeting approaching and expectations of no rate cuts, the market is pricing in a more hawkish tone, adding to the cautious mood.” Bitcoin Price Analysis Bitcoin (BTC) plummeted to a low of $97,766 as markets were rattled by Chinese AI model DeepSeek. However, it reclaimed $100,000 and is currently trading around $102,650, with bulls struggling to build momentum. Some analysts have warned of the potential of a 20% to 30% decline. Additionally, with US big tech companies reporting earnings and the Federal Reserve’s January meeting results set for Wednesday, markets could see more volatility during the week. BTC has been highly volatile since surging to a new all-time high on Monday when it rose to $109,312. However, it lost momentum after reaching this level and settled at $102,408, registering an increase of 0.96%. Buyers retained control on Tuesday despite selling pressure, rising nearly 4% and settling at $106,059. Sellers returned to the market on Tuesday as momentum waned and BTC dropped 2.21% to $103,715. The price encountered significant volatility on Thursday dropping to an intraday low of $101,296, reaching an intraday high of $106,903, before settling at $104,004. Source: TradingView Buyers attempted a move past $107,000 on Friday as BTC reached an intraday high of $107,038. However, momentum dropped, and BTC fell to $104,874, ultimately registering an increase of 0.84%. Sentiment changed over the weekend as BTC registered a marginal drop on Saturday before dropping over 2% to $102,665, ending the weekend on a bearish note. Monday saw markets rattled as tech stocks tumbled following news about DeepSeek. As a result of these factors, BTC plummeted below $100,000, falling to an intraday low of $97,766. However, it recouped some losses as it reclaimed $100,000 and settled at $102,064. The current session sees BTC marginally up as buyers struggle to build momentum. BTC’s drop on Monday saw the price test the support around the 50-day SMA before it recovered to reclaim $100,000. The RSI currently sits at 55, indicating a slight advantage to the bulls. However, the MACD has flipped to bearish, indicating a sell signal and a possible downtrend. Additionally, if BTC dips below the neckline of the double-top pattern, we could see a deep correction that could drag the price below $90,000 and toward $75,000-$80,000. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.