On January 27, 2025, the cryptocurrency market saw a significant correction, with Bitcoin's price dropping by 6%, falling below the $100,000 mark, reaching the lowest point in 11 days. Other major cryptocurrencies also experienced substantial declines, with Ethereum down 8.6%, reporting at $3,040; Solana and Dogecoin fell by 13%, reporting at $223 and $0.31, respectively.

The main reasons for this market correction include:

1. Technology stock sell-off: The launch of an open-source AI model by the Chinese artificial intelligence company DeepSeek raised concerns about the dominance of Western tech companies, leading to a drop in tech stocks, which in turn affected the cryptocurrency market.

2. Uncertainty in U.S. policies: Recent policy moves by U.S. President Trump did not meet market expectations, particularly regarding plans for cryptocurrency reserves, leading to investor disappointment.

3. Interest rate outlook: The market expects the U.S. Federal Reserve to maintain high interest rates, which puts pressure on risk assets, including cryptocurrencies.

Additionally, market volatility has led to a significant number of investors being liquidated. According to Coinglass data, over 320,000 people were liquidated in the cryptocurrency market in the past 24 hours, with the liquidation amount reaching $881 million, of which more than 90% were long positions liquidated.

Despite the recent market correction, some analysts remain optimistic about the long-term prospects of cryptocurrencies. BitMEX co-founder Arthur Hayes predicts that Bitcoin's price may correct to the range of $70,000 to $75,000 in the short term, but as central banks around the world resume quantitative easing policies and liquidity is re-injected into the market, Bitcoin is expected to surge to $250,000 before the end of the year.