Bitcoin Surges Past $100K After Market Turmoil

The crypto market has faced a turbulent few days, with total liquidations nearing $1 billion and leveraged bulls bearing significant losses. Bitcoin’s price briefly plunged below the critical $100,000 mark as perpetual futures liquidations skewed dramatically—1,700% in favor of long positions.

The sell-off appears to have originated outside the crypto realm. Deepseek, a new AI chatbot from China touted as 20 times cheaper than ChatGPT, disrupted the tech sector. This announcement erased $500 billion from Nvidia’s valuation in a day, sending shockwaves through broader markets, including the NASDAQ. The bearish sentiment spilled into crypto, intensifying the downturn.

CNBC’s Jim Cramer further fueled anxiety with grim comments on Nvidia’s losses, but his bearish analysis coincided with what some call the "Inverse Cramer Effect." Bitcoin quickly rebounded, surging above $100,000, sparking a 31% spike in short liquidations as bearish positions were wiped out.

As of now, Bitcoin hovers around $101,300, a level traders see as crucial for confirming buyer strength. A daily close above this point could signal a sustained recovery, while failure to hold may prolong market volatility. The situation remains precarious, with both bulls and bears bracing for potential swings.

The rebound offers hope for crypto investors, but caution dominates as the market navigates lingering uncertainty. Bitcoin’s resilience amid broader market disruption underscores its unpredictable nature, keeping traders on edge.

This article is for informational purposes only and does not constitute financial advice.