Bitcoin Plummets to $99,500 Amidst Chinese AI Launch and Market Volatility

Chandan Gupta, a seasoned crypto analyst and news writer at CoinPedia, specializes in market analysis using on-chain metrics and industry insights to forecast market trends. With over four years of trading experience, Gupta simplifies complex concepts in technical and on-chain analysis, making them accessible to a broader audience. At CoinPedia, he leverages his expertise to identify and present emerging opportunities in the cryptocurrency space.

Bitcoin (BTC), the world's largest cryptocurrency by market capitalization, has been experiencing a significant price decline in recent days. Its daily chart has displayed bearish price action, with the overall cryptocurrency market, including BTC and other major assets, witnessing a substantial drop in price as of January 27, 2025.

The potential reasons behind this market downtrend are the launch of Chinese Deepseek AI and the major breakdown of the consolidation zone that BTC had been maintaining for the past 10 days. As a result, BTC is currently trading near $99,500, having experienced a 6% price decline in the past 24 hours. Despite this drop, traders and investors have shown strong interest and confidence, leading to a 310% surge in its trading volume during the same period.

In addition to the strong participation of traders and investors, BTC has also drawn the attention of crypto experts. Recently, Arthur Hayes, a prominent crypto expert and former CEO of BitMEX, made a bold prediction on X (formerly Twitter). He predicted that Bitcoin (BTC) would drop to $70,000–$75,000, triggering a mini financial crisis. However, he added that money printing would subsequently begin, driving $BTC to $250,000 by the end of the year.