Bitcoin Plunges Below $100K as DeepSeek AI Sparks Market Concerns

January 27, 2025 - 2 min. read

By Karim Noun

Bitcoin Correction

Bitcoin’s value plummeted down to $97,000 after Asian trading sessions began while experiencing a 6% drop over 24 hours. The cryptocurrency settled into a position around $99,290 after losing its upward momentum toward its peak value of $109,000.

AI Impact and Stock Market Response

The Chinese AI company DeepSeek became a major market force when its application achieved the number one position in the App Store. Major US tech companies face potential impact because of DeepSeek’s market success which caused Nasdaq 100 futures to fall by 2%.

Massive Liquidations

Unprecedented market volatility forced liquidations worth $855 billion to affect more than 313,000 traders. The market losses from long positions surpassed short positions by $795 billion while short positions experienced $59 million worth of loss. A $98 million BTC-USDT position held by HTX clients became the market’s largest single asset liquidation.

Market Liquidation

Expert Outlook

BitMEX co-founder Arthur Hayes sees Bitcoin prices reaching $250,000 by year’s end while anticipating they could fall to between $70,000-$75,000 soon. The positive outlook comes from two factors that will lead to economic instability and relaxed monetary policies.

Market Downturn

Market uncertainty spread throughout the crypto market when DeepSeek AI entered the space alongside the end of the Trump-rally momentum which triggered the market downturn. Experts predict Bitcoin will maintain positive long-term performance despite present market fluctuations despite ongoing short-term price instability.

Karim Noun

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