The recent drop in Bitcoin price has led to multimillion-dollar liquidations according to Coinglass data, but it has also opened the door for long-term investors.
The cryptocurrency market started the week on a downward trend, with Bitcoin, the leading cryptocurrency, trading below the psychological barrier of $100.000.
According to data from CoinMarketCap, the price of Bitcoin is hovering around $98.800 at the time of writing. This drop, while significant, is not unexpected considering the volatility of cryptoassets, but it has sparked a debate between those who see a new investment opportunity and those who prefer to wait for more favorable signs.
While Bitcoin's market cap has taken a hit with this price drop, it maintains its dominant position as the leading cryptocurrency, with a considerable gap compared to its competitors.
What has caused the current Bitcoin price correction?
According to market analysts, Bitcoin's recent fall, which has significantly impacted its price and capitalization, has been driven specifically by increasing competition within the technology space, with a particular focus on Artificial Intelligence. According to several reports, the emergence of new AI technologies by China, with its implications still not entirely clear, is affecting the technology and cryptocurrency market.
Specifically, the launch of Chinese AI firm DeepSeek is eclipsing other powerful AIs such as ChatGPT, intensifying competition in the sector, creating uncertainty and triggering a “flight to safety” from other assets among some investors.
In addition to the price of Bitcoin, technology companies with strong ties to AI development, such as Nvidia, have experienced sharp falls in their share prices, reflecting fears of increased competition and the redistribution of resources in the sector.
Experts generally attribute this crash partly to the nervousness generated by the success of DeepSeek. In this context, investors seem to be motivated to liquidate positions and take refuge in assets considered safer, which is contributing to the fall in the price of Bitcoin.
Source: CoinMarketCap
$880 million liquidated in the last 24 hours
Amid falling prices of Bitcoin and other cryptocurrencies, the crypto market has experienced a massive sell-off of $ 880 million dollarsAccording to data from the Coinglass platform, the majority of trade liquidations were from long positions, totaling $810 million currently.
Source: Coinglass
While the drop is notable, it is crucial to note that Bitcoin has experienced numerous bull and bear cycles throughout its history and that the political and regulatory landscape for crypto assets in the United States is quite promising, leading some analysts to predict a quick recovery for the cryptocurrency's price.
Thanks to the strong support base that Bitcoin has among long-term institutional and individual investors, this drop can be seen by many as a buying opportunity at a reduced price. The general consensus points to sustained BTC price growth in the coming months and years, with experts such as Larry Fink, CEO of BlackRock, anticipating new all-time highs of $700.000 per BTC.
Thus, despite the volatility, most experts still maintain a positive long-term view for Bitcoin. Its underlying blockchain technology and decentralized feature position it as a unique asset in the financial landscape. Furthermore, the growing adoption of cryptocurrencies by financial and government entities in various countries and the evolution of digital infrastructures contribute to the belief that Bitcoin can continue to gain ground.
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