Bitcoin's Resilience: Bull Market Holds Despite Market Corrections

Bitcoin's Resilience in the Face of Market Corrections

Bitcoin has demonstrated remarkable market resilience since the bull phase commenced in late 2022. Over the last 30 days, Bitcoin has maintained price adjustments below -10%, a stark contrast to the monthly downturns of 30% or more commonly observed in bear markets. Recently, Bitcoin neared a crucial retracement threshold, often interpreted as a consolidation bottom indicative of a robust bull cycle.

Significant price movements have been recorded, with sharp surges of over 40% occurring in March and November of 2024, presenting strategic profit-taking scenarios for investors. Analyzing the ongoing trend, it appears that Bitcoin remains firmly within a bull market, suggesting that a -10% retracement may offer an advantageous moment for investors seeking to capitalize on potential upward momentum.

Former BitMEX CEO Arthur Hayes has predicted that the price of Bitcoin could collapse to the $70,000 level due to a "mini financial crisis" in the U.S. However, he is convinced that the leading cryptocurrency could eventually surge to the $250,000 level by the end of the year.

Earlier today, the leading cryptocurrency crashed to an intraday low of $98,440, nosediving by nearly 7% over the past 24 hours. This coincided with major chip stocks experiencing a severe rout in pre-market trading. E-mini Nasdaq-100 Futures are down 2.62%, according to the latest data.

The market turmoil came after the Chinese artificial intelligence (AI) startup DeepSeek released a new large language model called DeepSeek-R1, which was able to outperform some of the popular models, including OpenAI o1, on some key benchmarks. This is despite the fact that the startup was struggling to get advanced chips due to export controls. Notably, the startup spent a puny $6 million to train the model compared to the billions of dollars required by OpenAI.

The model made waves shortly after OpenAI announced Startgaste, a $500 billion AI infrastructure project created in collaboration with SoftBank and some other participants. The success of DeepSeek, which has emerged as the most popular app on the App Store, might put a dent in demand for chips and