Bitcoin Price Plummets Below $100,000 Amid Market Turbulence
Bitcoin faced a significant drop in value during Asian trading hours, dipping below $100,000 as market instability affected the crypto and stock markets at large.
Bitcoin’s Decline
- Bitcoin (BTC) experienced a more than 6% decline in the last 24 hours, reaching as low as $97,000 before bouncing back to $99,290.
- This drop marks the end of the rally that pushed Bitcoin to its all-time high of $109,000 before Donald Trump’s presidency.
Arthur Hayes’ Warning
- Co-founder of BitMEX, Arthur Hayes, predicts further declines with Bitcoin potentially dropping to $70,000-$75,000 in the short term.
- Hayes remains optimistic about Bitcoin’s long-term prospects, projecting a price of $250,000 by the end of the year.
Market Impact
- Other major cryptocurrencies like Ethereum, BNB, Solana, XRP, Dogecoin, and Cardano also saw losses of up to 9% following Bitcoin’s trajectory.
Stock Market Response
The decline in the crypto market had a ripple effect on US stock indices, with Nasdaq 100 futures dropping over 2%.
DeepSeek’s Influence
- The market turbulence was attributed to the growing popularity of DeepSeek, a Chinese AI company, which raised concerns over its impact on major US tech firms.
- Venture Capitalist Marc Andreessen described DeepSeek as “AI’s Sputnik moment.”
Liquidation Frenzy
The volatile crypto market triggered a wave of liquidations, wiping out over $855 billion in value and impacting more than 313,000 traders.
Impact on Traders
- Long traders suffered the most significant losses, totaling $794 billion, while short traders lost approximately $59 million.
- Bitcoin traders faced the largest losses, with liquidations totaling around $259 million, including a $247.5 million liquidation from long positions.