Bitcoin’s price plunged 5.5% in the past 24 hours, falling below the crucial $100K support level for the first time since 2017. This decline has sent shockwaves through the cryptocurrency market, which collectively saw an 8% drop.
Major altcoins such as Ethereum, XRP, Solana, and Dogecoin experienced even more significant losses, with declines ranging between 9% and 17%.
Arthur Hayes Predicts a Possible Correction
Former BitMex CEO Arthur Hayes warned of a looming “mini financial crisis” that could push Bitcoin’s price to $70K-$75K. His concerns were triggered by a wave of liquidations totaling $854.39 million, with leveraged long positions accounting for $794.5 million of that figure.
The sell-off has been compounded by long-term holders offloading 75,000 BTC over the past week, signaling hesitation about Bitcoin’s short-term stability. Hayes suggests this wave of selling may foreshadow a deeper market correction, with analysts pinpointing $75K as the next critical support level.
DeepSeek Fuels Market Jitters
Adding to the turmoil, the launch of China’s AI app DeepSeek, positioned as a ChatGPT competitor, has unsettled global investors. The app quickly topped Apple’s App Store rankings, sparking concerns about its potential disruption to the tech sector.
Market analyst Adam Kobeissi linked the app’s success to heightened risk aversion among crypto traders, who are shifting to safer assets amid fears of broader market changes. This sentiment has added downward pressure on Bitcoin, which has struggled to regain its footing in the wake of DeepSeek’s launch.
Divergent Views on Bitcoin’s Next Move
While some analysts see Bitcoin’s dip as a healthy correction following its recent rally, others warn of a prolonged downturn. Georgii Verbitskii, founder of TYMIO, predicts a more modest correction to $87K, provided Bitcoin remains below the $100K resistance in the coming week.
Despite the recent volatility, experts emphasize that Bitcoin’s fundamentals remain strong, with robust demand and adoption offering long-term support.
Conclusion
Bitcoin’s fall below $100K highlights the volatile nature of cryptocurrency investing, with traders navigating a mix of technical indicators, market sentiment, and external factors like the DeepSeek launch. While a drop to $75K is possible, strong fundamentals suggest the market could stabilize soon. The coming week will likely be pivotal in determining the direction of Bitcoin and the broader crypto landscape.
Victor Swaezy
Victor Swaezy is a crypto-journalist with more than 3 years of experience in covering blockchain technology and digital currencies news. Known for his comprehensive reporting, Victor has contributed to leading industry publications, providing market participants with the required knowledge to make informed decisions. When he is not working, he loves to watch movies and have a good time.