The recent decrease in Bitcoin under the most important level of support in the past week led to enormous liquidation in the crypto market, with analysts who warned of a potential further correction.
The price of Bitcoin (BTC) registered a sharp decrease of almost 5.5% last day and dropped for the first time since President Donald Trump’s inauguration on January 20 under the support level of $ 100k. The Cryptomarkt, which fell by 8% in the same period.
Large cryptocurrencies, including Ethereum (ETH), XRP (XRP), Solana (SOL), Dogecoin (Doge) and Cardano (ADA), experienced even greater losses, ranging between 9% and 17%.
The Crypto trader and former Bitmex CEO Arthur Hayes followed in the midst of the Marktbloedbad, warned in a post on January 27 of an imminent ‘mini financial crisis’ that he thinks could lead to a bitcoin correction to $ 70k-75k level.
The experts’ comments then caused a $ 854.39 million mass of liquidation event event to cause the recent price drop, which caused almost $ 794.5 million in livered long positions within 24 hours per data from CoingLass.
Markets staggered after the debut of the AI app of China, Deepseek, which sent shock waves through the technical and crypto space. Focused on rival chatgpt made by the US, Deepseek rose to the top of the free app rankings of the Apple App Store, all with a modest budget of $ 10 million and a stark contrast with the considerably higher budget from Chatgpt.
According to market analyst Adam Kobeissi, the launch of Deepseek has probably made traders, which led to the recent crash.
“Risk-off is the theme, because Deepseek makes investors afraid,” he wrote in a January 27 X after.
The recent price correction of Bitcoin has also been fueled due to an increase in profit gain. According to For Analyst Ali Martinez, the long-term Bitcoin holders have lowered their participations by more than 75,000 BTC last week.
Georgii Verbitskii, founder of Tymio, did not agree with Hayes, with the argument that the recent sale is a cooling after the Crypto Market Bull Run that started after Trump’s presidential victory.
“In my opinion, the recent Bitcoin price dip is a natural cooling after the exciting rally that started on November 5. Although some market players such as Arthur Hayes predict a correction of up to $ 75k, I do not share that expectation – the foundations of Bitcoin remain strong, ”Verbitskii told Crypto.news.
According to him, if Bitcoin will continue to act in the coming week under the psychological resistance level of $ 100k, a more modest correction up to $ 87k could be on the horizon.
“As long as the underlying Fundamentals remain intact, I believe that this correction is only part of the wider market cycle,” he added.
