BTC News: Arthur Hayes Predicts Bitcoin Correction to $75K Soon

Bitcoin’s price nosedived by nearly 5.5% over the past day, slipping below the crucial $100K support level for the first time since 2017. The cryptocurrency market as a whole felt the sting, tumbling 8% during the same period.

Other major digital assets, like Ethereum, XRP, Solana, and Dogecoin, experienced even steeper losses, with declines ranging between 9% and 17%.

Arthur Hayes Warns of a Potential Correction

Former BitMex CEO Arthur Hayes cautioned about a possible “mini financial crisis,” suggesting Bitcoin could correct to $70K-$75K. His concerns followed a wave of liquidations totaling $854.39 million, with $794.5 million wiped out from leveraged long positions.

Hayes’s warning has intensified speculation that Bitcoin’s next support level might hover around $75K. Traders’ profit-taking has amplified the broader market downturn, as long-term Bitcoin holders unloaded over 75,000 BTC in the past week.

Analysts believe these actions suggest investors hesitate about the market’s short-term stability. Hayes argues the sell-off could indicate a deeper correction looming on the horizon.

Reversing the order of my tryptic essay series.

The Ugly will be published tomorrow morning. I am calling for a $70k to $75k correction in $BTC, a mini financial crisis, and a resumption of money printing that will send us to $250k by the end of the year. pic.twitter.com/wohvbKkXOf

— Arthur Hayes (@CryptoHayes) January 27, 2025

Bitcoin Drops as DeepSeek Stirs Market Anxiety

Adding to the market chaos, China’s new AI app, DeepSeek, launched with significant fanfare, sparking anxiety among global investors. The app, positioned as a rival to ChatGPT, soared to the top of Apple’s App Store rankings within days.

Analysts link this tech disruption to a wave of cautious, risk-averse behavior among traders, contributing to Bitcoin’s latest pullback.

Market analyst Adam Kobeissi noted that DeepSeek’s success has spooked crypto traders, amplifying fears of broader market shifts. Investors have reacted by shifting to safer assets, further dampening the cryptocurrency market.

The uncertainty surrounding DeepSeek’s impact on the tech space has left Bitcoin and its peers struggling to regain footing. Market opinions remain split, with some analysts describing Bitcoin’s plunge as a natural cooldown following its recent rally.

Georgii Verbitskii, founder of TYMIO, believes the dip is merely a pause in the broader market cycle. He anticipates a more modest correction to $87K, provided Bitcoin stays under the $100K resistance level in the coming week.

Despite the turbulence, experts stress Bitcoin’s fundamentals remain intact, with strong demand and adoption underpinning long-term potential. While some brace for a drop to $75K, others argue the correction will stabilize soon.

Either way, the next week could prove pivotal for the cryptocurrency market.

Bitcoin’s current price action highlights the volatile nature of crypto investing, leaving traders and analysts alike watching for the next major move. Whether Bitcoin rebounds or falls further, market participants are bracing for what’s next.

FAQs