- Bitcoin drops below $100K, triggering $1.23 billion in liquidations as the market faces pressure.
- Arthur Hayes forecasts further decline, with BTC potentially reaching $70K-$75K before recovery.
- Tech sell-off impacts crypto as investors liquidate Bitcoin to cover losses in U.S. tech stocks.
Bitcoin’s price has experienced another downturn, falling below $100,000 and triggering over $1.23 billion in liquidations. This marks another major liquidation event, with technical analysts suggesting a potential further decline to $95,000.
Former BitMEX CEO Arthur Hayes has presented an even more bearish short-term outlook, predicting a correction to the $70,000-$75,000 range. Hayes, known for his market insights, plans to detail his analysis in an upcoming essay titled “The Ugly.” Despite this near-term pessimism, he maintains a bullish long-term perspective, forecasting Bitcoin to reach $250,000 by year-end.
The current market downturn coincides with broader technological and geopolitical factors. A notable catalyst has been the emergence of DeepSeek, a Chinese artificial intelligence application whose success has triggered a sell-off in U.S. technology stocks, particularly affecting companies like Nvidia. Market analysts suggest that institutional investors may be liquidating Bitcoin positions to offset losses in their technology portfolios.
This market reaction appears particularly important given recent positive developments in U.S. cryptocurrency policy. President Donald Trump’s administration has implemented several crypto-friendly initiatives. This includes the establishment of a dedicated cryptocurrency working group and the exploration of a national cryptocurrency stockpile. The administration has also taken a stance against Central Bank Digital Currencies (CBDCs), fulfilling campaign promises to support cryptocurrency adoption.
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The timing of this correction raises questions about the relationship between traditional technology markets and cryptocurrency valuations. The interconnection appears more pronounced as institutional investors increasingly treat Bitcoin as part of their broader investment portfolios.
Technical analysts point to several key support levels that could determine Bitcoin’s short-term trajectory. The immediate focus is on the $95,000 level, which is an important psychological and technical support zone. However, Hayes’s projection of a move to $70,000-$75,000 suggests the possibility of a deeper retracement before any sustained recovery.
According to the latest CoinMarketCap data, Bitcoin is down by almost 5.5% at press time, while Ethereum has lost around 7.5% in the last 24 hours. The global crypto market cap has also lost 6% during this period.
