TL;DR
- Bitcoin briefly dropped to $98,000 and is now hovering around $100,500, showing a 4.14% loss amid financial uncertainty.
- Arthur Hayes predicts a correction to $70,000-$75,000 before a potential surge to $250,000 by the end of 2025.
- The rise of AI with applications like DeepSeek and a new crypto regulation group in the U.S. contribute to market volatility.
The Bitcoin market is experiencing a period of significant volatility, marked by a major correction and differing opinions among experts.
Over the last 24 hours, BTC plummeted, briefly touching $98,000. It later recovered slightly and is now trading around $100,500, reflecting a 4.14% loss. This decline coincides with shifts in the global technological and financial markets, which have caused significant uncertainty among investors.
Arthur Hayes, co-founder of BitMEX, has forecasted a severe correction in Bitcoin’s price, expecting it to drop to a range of $70,000 to $75,000. This adjustment is linked to a potential short-term financial crisis. However, Hayes remains optimistic about the long-term outlook, projecting that BTC could reach $250,000 by the end of 2025, fueled by a possible return to expansionary monetary policies.
The Impact of AI on the Bitcoin Market
Bitcoin’s recent decline cannot be fully understood without examining developments in the tech industry. The growth of DeepSeek, an artificial intelligence application known for its efficient hardware usage, has shifted investors’ focus toward other sectors. This shift has led to capital flowing out of riskier assets like cryptocurrencies, increasing the perception of market fragility.
Crypto Market Regulations
On the political front, President Donald Trump announced the formation of a task force dedicated to regulating the crypto sector. This initiative could shape the development of the crypto industry in the United States by establishing a regulatory framework within six months. Although specific measures have not yet been disclosed, this move represents an attempt to address the regulatory uncertainty affecting the sector.
From a technical perspective, analysts like Ali Martinez highlight historical patterns suggesting a potential rebound in Bitcoin’s price. According to his analysis, the current price level shows similarities to previous cycles where significant bullish movements occurred at comparable stages. While a recently failed head-and-shoulders technical pattern might have indicated a larger correction, it now seems to suggest a potential upside toward $122,000.
