Major Bitcoin Correction Predicted by Arthur Hayes
2025-01-27
Category: None

Former BitMEX CEO Arthur Hayes has predicted that the price of Bitcoin of Bitcoin could collapse to the $70,000 level. 
The entrepreneur believes that the possible crash will be caused by a "mini financial crisis" in the U.S. 
With that being said, the BitMEX boss is convinced that the leading cryptocurrency could eventually surge to the $250,000 level by the end of the year. 
The DeekSeek rout 
Earlier today, the leading cryptocurrency crashed to an intraday low of $98,440, nosediving by nearly 7% over the past 24 hours. 
This coincided with major chip stocks experiencing a severe rout in pre-market trading. E-mini Nasdaq-100 Futures are down 2.62%, according to the latest data. 
The market turmoil came after the Chinese artificial intelligence (AI) startup DeepSeek released a new large language model called DeepSeek-R1, which was able to outperform some of the popular models, including OpenAI o1, on some key benchmarks. This is despite the fact that the startup was struggling to get advanced chips due to expert controls. Notably, the startup spent a puny $6 million to train the model compared to the billions of dollars required by OpenAI. 
The model made waves shortly after OpenAI announced Startgaste, a $500 billion AI infrastructure project created in collaboration with SoftBank and some other participants. 
The success of DeepSeek, which has emerged as the most popular app on the App Store, might put a dent in demand for chips and data centers considering that the startup spent mere peanuts on raw computing power while still outperforming the leading US tech giants. 