The Bitcoin currency has seen a sharp decline during trading, dropping below the key support level of $100,000, leading to massive liquidations in the cryptocurrency market, with Bitcoin's price losing about 5.5% over the past 24 hours, while the total value of the digital currency market decreased by 8% during the same period.
Amid this sharp decline, Arthur Hayes, the former CEO of BitMex, warned of a minor financial crisis that could push Bitcoin to levels between $70,000 and $75,000. According to CoinGlass data, the recent drop resulted in liquidations worth $854.39 million, including $794.5 million from long leveraged positions within less than 24 hours.
Profit-taking Behind the Recent Decline In addition to external factors, profit-taking has contributed to the market pressure, with data showing that investors who held Bitcoin for long periods liquidated over 75,000 Bitcoins over the past week, according to analyst Ali Martinez.
Diverging Views on Bitcoin's Future For his part, Georgy Verbitsky, founder of TYMIO, stated that the current decline is merely a natural adjustment after the strong rise that followed Trump's victory in the presidential elections. He explained that Bitcoin still enjoys strong fundamentals supporting its long-term sustainability.
Additionally, Verbitsky pointed out that a potential correction for Bitcoin could reach $87,000 if trading continues below the $100,000 level. He confirmed that this correction is a part of the natural market cycle as long as the economic fundamentals of Bitcoin remain unchanged.
