Bitcoin (BTC) has been facing a downward trend in its price recently, with the overall cryptocurrency market experiencing a significant drop. This decline can be attributed to the launch of Chinese Deepseek AI and the breakdown of the consolidation zone that BTC had been maintaining for the past 10 days. As of today, January 27, 2025, BTC is trading near $99,500, marking a 6% decrease in the past 24 hours. Despite the price drop, trading volume has surged by 310%, indicating strong interest and confidence from traders and investors.
Crypto expert Arthur Hayes, the former CEO of BitMEX, recently made a bold prediction on Twitter. He forecasted that Bitcoin (BTC) could drop to $70,000–$75,000, leading to a mini financial crisis. However, he also mentioned that this would trigger money printing, propelling BTC to $250,000 by the end of the year.
Analyzing the technical aspects of BTC, the daily chart shows a bearish trend. The cryptocurrency has broken out of its consolidation range between $99,700 and $107,000, signaling a shift towards bearish sentiment. If BTC closes below the $99,000 level, there is a high probability that it could further decline by 9% to reach $90,000 in the near future. This shift in sentiment suggests that bears are currently dominating the asset, potentially benefiting short sellers in the short term.
In conclusion, Bitcoin’s price decline can be attributed to various factors such as market developments, expert predictions, and technical analysis. Traders and investors should closely monitor these trends to make informed decisions regarding their cryptocurrency investments.