Bitcoin Correction Predicted as DeepSeek Sparks Market Sell-Off
Bitcoin's recent drop of nearly 6% over the past 24 hours has left market experts warning of potential further declines. The cryptocurrency briefly fell below $98,000 before recovering some losses.
Arthur Hayes, co-founder of BitMEX, is one such expert who predicts a challenging period for Bitcoin. He foresees a correction to between $70,000 and $75,000, describing it as a 'mini financial crisis.'
Despite this short-term forecast, Hayes remains optimistic about Bitcoin's long-term potential. He envisions a surge to $250,000 by year-end, propelled by renewed monetary stimulus.
The recent drop in Bitcoin's value has been linked to a broader market sell-off spurred by the rise of DeepSeek, a China-based artificial intelligence app that has impressed markets with its effective competition against OpenAI's models while requiring fewer resources.