Bitcoin's recent drop below a key support level over the past week has led to a massive liquidation in the cryptocurrency market, with analysts warning of the potential for a further correction ahead.
Bitcoin (Bitcoin) The price recorded a sharp decline of approximately 5.5% over the past day, falling below the $100,000 support level for the first time since President... Donald Trump's inauguration On January 20th. The decline in prices for leading cryptocurrencies coincided with a broader decline in the cryptocurrency market, which fell by 8% during the same period.
Major cryptocurrencies, including Ethereum (Ethereum), Ripple (XRP), Solana (Sol), Dogecoin (Doug), and Cardano (AdaIt witnessed greater losses, ranging between 9% and 17%.
Amid the market bloodbath, cryptocurrency trader and former BitMex CEO Arthur Hayes warned in a January 27 post of an impending “mini-financial crisis” that he believes could lead to Bitcoin correcting to the $70,000-$75,000 level.
The expert commentary came as the recent decline in Bitcoin prices triggered a mass liquidation of $854.39 million, wiping out nearly $794.5 million of leveraged long positions within 24 hours according to data from CoinGlass.
Markets fell after the debut of Chinese artificial intelligence app DeepSeek, which sent shockwaves through the technology and cryptocurrency space. Aiming to rival US-made ChatGPT, DeepSeek vaulted to the top of the free app rankings on the Apple App Store, all on a modest budget of $10 million – a stark contrast to ChatGPT's much higher budget.
According to market analyst Adam Kobeissi, the launch... Deep Sick This likely spooked traders, leading to the recent crash.
“Risk aversion is the topic on which DeepSeek scares investors,” he wrote on January 27. mail.
The recent Bitcoin price correction was also driven by a rise in profit taking. According to According to analyst Ali Martinez, long-term Bitcoin holders reduced their holdings by more than 75,000 BTC in the past week.
TYMIO founder Georgi Verbitsky disagreed with Hayes, viewing the recent sell-off as a cooling-off after the rally in the cryptocurrency market that began after Trump's presidential win.
“The recent decline in Bitcoin prices is, in my opinion, a natural calming down after the dramatic rally that began on November 5th. While some market players like Arthur Hayes are predicting a correction to $75K, I do not share this prediction – Bitcoin fundamentals remain Powerful,” Verbitsky told crypto.news.
According to him, if Bitcoin continues to trade below the $100,000 psychological resistance level over the next week, a more modest correction to $87,000 could be on the horizon.
“As long as the fundamentals remain intact, I think this correction is just part of the broader market cycle,” he added.
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