Bitcoin Drops Below $100K Support as Market Faces $854M

• The Bitcoin price dropped by 5.5% dropping beneath $100k, which led to a widespread liquidation in the crypto space. 
• The market saw $854.39m in liquidations led by longs who were leveraged to increase the effect of the selloff. 
• Experts expect the pullbacks to be $70K–$75K due to macroeconomic factors or long-term investors liquidating their BTC holdings. 

The cryptocurrency market suffered a setback with Bitcoin going below the $100,000 support level, experiencing a 5.5% drop in the last 24 hours. This is the first time the price of Bitcoin has flashed this kind of bearish signal since January 20th, which just happens to be the same day President Donald Trump was inaugurated. The decline is broader market volatility, with the total market capitalization of all cryptocurrencies having fallen by 8%.

Market Sees Widespread Liquidations 

It led to massive liquidations worth $854.39 million as seen from the data on CoinGlass. Longs, and specifically leveraged longs, were most affected and saw about $794.5 million worth of liquidations the same day. This sell-off closed out positions across several markets, including Bitcoin and other major altcoins such as Cardano which saw losses of between nine and seventeen percent.

Analysts Predict Further Downside 

Arthur Hayes, former BitMex CEO, warned of further corrections in the near term. In a January 27 X post, Hayes described the market conditions as indicative of a “mini financial crisis.” He predicted Bitcoin could correct to the $70,000–$75,000 range if the current sentiment persists. 

Conversely, TYMIO founder Georgii Verbitskii viewed the dip as a natural cooling-off period after a prolonged rally. He suggested Bitcoin might stabilize around $87,000 if it remains under the psychological resistance of $100,000. Despite differing views, both experts agree that the market faces heightened volatility.

External Market Factors Add Pressure 

The launch of China’s AI application, DeepSeek, coincided with the market sell-off. DeepSeek, developed on a $10 million budget, has climbed to the top of Apple’s app store rankings, signaling competition for U.S.-based AI platforms like ChatGPT. This development has reportedly spooked investors, contributing to a risk-off sentiment across markets.

Market analyst Adam Kobeissi highlighted DeepSeek’s impact, stating that its rapid success has created uncertainty, particularly for the tech and crypto sectors. 

On-chain data indicates a rise in profit-taking by long-term Bitcoin holders. Analyst Ali Martinez revealed a reduction of over 75,000 BTC from long-term holdings in the past week. This trend has added selling pressure to an already fragile market.