Bitcoin Price Dips Below $100,000

On January 27, the price of the leading cryptocurrency fell below $100,000. At one point, the price on the Binance exchange reached $99,713.

The correction in Bitcoin was accompanied by a sharp increase in trading volume.

Over the day, the price of digital gold decreased by 4.8%. Leading altcoins showed even deeper declines. Solana (SOL) fell by 10.9%, and Dogecoin (DOGE) by 9.7%.

The volume of liquidations in the crypto market over 24 hours exceeded $623 million. The overwhelming majority were long positions, amounting to more than $580 million.

The total cryptocurrency market capitalization shrank to $3.56 trillion. Bitcoin’s dominance stands at 55.8%, while Ethereum’s is 10.6%.

Experts interviewed by Bloomberg linked the correction to profit-taking by investors amid a regulatory initiative by U.S. President Donald Trump. On January 24, the head of state signed an order to create a working group on cryptocurrencies, calling the digital assets sector a crucial driver of financial innovation.

The group is expected to propose recommendations within 180 days for regulatory and legislative changes concerning the “issuance and circulation of digital assets, including stablecoins, in the United States.” The structure will also assess the potential for creating a “national reserve of digital assets.”

“While the market got 90% of what it wanted from the order, it’s clear that much of this was already priced in,” said Sean McNulty, head of derivatives for the Asia-Pacific region at FalconX.

Everything that did not concern the reserve, which would immediately start purchasing bitcoins, was a disappointment, the expert added.

“After a series of positive news, such as the appointment of crypto-friendly officials, the registration of new ETF products, and government orders, the market seems to be taking a breather,” commented Justin d’Anethan, head of sales at Liquifi.

Former BitMEX CEO Arthur Hayes suggested that Bitcoin’s correction could reach levels of $70,000-75,000. However, he predicted that a “resumption of money printing” would drive the price to $250,000 by the end of the year.

Reversing the order of my tryptic essay series.

The Ugly will be published tomorrow morning. I am calling for a $70k to $75k correction in $BTC, a mini financial crisis, and a resumption of money printing that will send us to $250k by the end of the year. pic.twitter.com/wohvbKkXOf

— Arthur Hayes (@CryptoHayes) January 27, 2025

“We are in the late stage of the Bitcoin bull market, but I believe there are still opportunities for growth. I would say we are in the early distribution phase as new retail investors come in. The global advertising impact of Trump could extend the current rally for a couple more quarters,” suggested CryptoQuant CEO Ki Young Ju.

In February, analysts at 10x Research believe the price of the leading cryptocurrency could reach $122,000 before “another consolidation.”