Bitcoin Plunges Below $100K, Hayes Warns of "Mini Financial Crisis"

Bitcoin's price has taken a significant tumble, dropping nearly 5.5% over the past day and slipping below the crucial $100K support level for the first time since 2017. The cryptocurrency market as a whole has felt the sting, with a collective 8% decline during the same period. Other major digital assets, such as Ethereum, XRP, Solana, and Dogecoin, have experienced even steeper losses, ranging between 9% and 17%.

Former BitMex CEO Arthur Hayes has cautioned about a possible "mini financial crisis," suggesting that 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.

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 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.