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.
Editorial & Legal Practice Group
Authored and reviewed by the corporate law and tax litigation practice group at Javid Law Associates. Our team comprises High Court advocates, corporate legal advisors, and authorized tax practitioners across Pakistan.
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