Bitcoin falls below $100k, triggering $855B in liquidations amid Deepseek AI market shock
Bitcoin fell below $100,000 during Asian trading hours, declining over 6% to a low of $97,000 before recovering to $99,290. This drop ends the rally that peaked at $109,000 before Donald Trump's inauguration. Analyst Arthur Hayes warned of potential further declines, predicting a brief dip to $70,000-$75,000 but maintaining a long-term bullish outlook with a target of $250,000 by year-end. Other cryptocurrencies like Ethereum and BNB also dropped up to 9%. The US stock market mirrored this decline, with Nasdaq 100 futures falling over 2%, and estimates suggest a potential $1 trillion loss in equity markets due to investor concerns linked to the rise of Chinese AI company DeepSeek. The crypto market experienced a liquidation event, wiping out over $855 billion and affecting more than 313,000 traders, with Bitcoin traders facing the largest losses at around $259 million.
