Bitcoin’s trading volume surged by 222 percent on Monday to $55.3 billion but the cryptocurrency’s price fell 8.7 percent from its January 20 all-time high of $108,000 to $98,941.
Analysts are also predicting a sharp correction that could push Bitcoin down to $70,000 before climbing to $250,000 later this year.
Donald Trump’s recent move to draw up new crypto regulations didn’t do much to tempt bulls which caused BTC to lose nearly 9 percent value in the past 24 hours. This is the first time the unreal Donald Trump crypto frenzy has forced BTC to retreat big gains.
The crypto derivatives market saw $850 million in forced liquidations in the past 24 hours. Long positions bore most of the losses. According to Bloomberg, concentrated sell pressure in the $104,000–$108,000 range and profit-taking were key drivers of the decline.
Also, Bitcoin’s network difficulty recorded its first significant drop since September 2024 today.
Chinese AI firm Deepseek’s recent breakthrough as a potential trigger for investors to reduce reliance on OpenAI for calibrating US bond exposure was also one of the reasons for today’s big drop.