Bitcoin experienced a sharp 6% drop in the past 24 hours, briefly falling below $98,000 despite recent bullish catalysts. Market experts warn of potential further declines, with BitMEX co-founder Arthur Hayes forecasting a corrective phase.
Key Predictions and Market Analysis
Short-Term Correction Expected
- Arthur Hayes predicts a Bitcoin price correction to the $70K–$75K range, citing a potential "mini financial crisis."
- Long-term optimism remains: Hayes projects a year-end rally to $250,000, fueled by renewed monetary stimulus.
Catalysts Behind the Recent Drop
- Broader Market Sell-Off: Triggered by investor uncertainty around AI advancements, particularly China’s DeepSeek app, which rivals OpenAI’s models with superior efficiency.
- Failed Technical Patterns: Analyst Ali Martínez highlighted the invalidation of a head-and-shoulders pattern, suggesting bullish momentum could resume with a $122K target.
Comparative Market Cycles
- Martínez draws parallels to Bitcoin’s 2015–2018 cycle, where parabolic growth followed similar consolidation phases.
FAQs
Why is Bitcoin dropping despite positive news?
Market sentiment is influenced by macro uncertainty, including AI sector disruptions and profit-taking after recent highs.
What’s Arthur Hayes’ long-term Bitcoin price target?
Hayes anticipates $250K by year-end, contingent on central bank liquidity measures.
How does DeepSeek’s AI impact crypto markets?
Its resource-efficient model sparked fears of sector upheaval, pushing investors toward risk-off assets temporarily.
👉 Explore Bitcoin’s latest trends
Keywords
Bitcoin price prediction, Arthur Hayes, DeepSeek AI, crypto market correction, $250K BTC, head-and-shoulders pattern, monetary stimulus, 2015–2018 cycle
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