Bitcoin saw a sharp decline during Asian trading hours, falling below $100,000, as widespread market turmoil affected the broader crypto and stock markets.
according to cryptoslate’s According to the data, BTC fell more than 6% over the past 24 hours to a low of $97,000 before recovering to $99,290 as of press time.
The decline breaks the momentum that pushed Bitcoin to an all-time high of $109,000 ahead of US President Donald Trump’s inauguration. Analysts note that this recession effectively signals the end of the Trump-induced rally that defined the late 2024 market.
Arthur Hayes, co-founder of Bitmex, to caution More declines. He suggested that Bitcoin could briefly drop to between $70,000 and $75,000, but he remains optimistic in the long term.
Hayes projects that Bitcoin will reach $250,000 before the year is out, citing potential financial instability and renewed monetary easing as the main catalysts.
Meanwhile, other major cryptocurrencies have mirrored Bitcoin’s path. Ethereum, BNB, Solana, XRP, DogeCoin, and Cardano all lost up to 9%, reflecting widespread market caution.
The stock market also falls
Furthermore, the ripple effect of the crypto market decline was also evident in US stock indices, with the NASDAQ 100 futures down more than 2%.
Kubesi message estimated That US stock markets could shed $1 trillion in market cap underscores the extent of investor concerns.
The company attributed the market turmoil to DeepSeek’s growing popularity, which has pushed it to the top spot in the App Store and fueled concerns about its impact on major US tech companies.
Deepseek is a Chinese AI company, its free and open source R1 model has surpassed the performance of Openai ChatGpt. Venture capitalist Marc Andreessen Described Application such as:
“The Sputnik moment of artificial intelligence.”
Liquidation madness
Crypto market volatility sparked widespread liquidation spree, with Data From Coinglass it shows over $855 billion has been cleared. This affected more than 313,000 traders.
According to the data, long traders – those betting on price increases – booked the heaviest losses, accounting for $794 billion. On the other hand, short traders, who were betting that prices would fall, lost about $59 million.
Bitcoin traders faced the most significant losses, with liquidations totaling around $259 million, including $247.5 million from long positions. Ethereum traders followed, recording $110 million in liquidations, with $104.8 million coming from long positions.
The largest single liquidation event occurred on HTX, including a long BTC-USDT position.
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