Bitcoin Dips Below $98K as Chinese AI Sparks Market Fears

Bearish Signals: Bitcoin Slumps Amid Tech Market Turmoil
DeepSeek AI Disrupts Markets: Bitcoin and Nasdaq Futures Slide
Bitcoin Bears Grow Bold as Funding Rates Turn Negative
Nasdaq and Bitcoin Hit by AI Shockwaves: What’s Next?

The Bitcoin (BTC) market has shifted to bearish sentiment, mirroring Wall Street’s tech-heavy Nasdaq futures, which fell 700 points amid risk aversion. Concerns are mounting over the cost-effective Chinese artificial intelligence (AI) startup DeepSeek, which is seen as a potential disruptor to U.S. technological dominance.

Bitcoin’s perpetual futures funding rates—payments between long and short traders in futures contracts—have turned negative, according to Velo Data. This indicates growing bearish sentiment, with traders increasingly betting on lower prices.

The world’s largest cryptocurrency by market value has fallen over 3% since early Asian trading hours, dipping below $98,000 at one point, according to CoinDesk data. Meanwhile, Nasdaq futures are down more than 3.5%, and NVIDIA, a key player in the AI sector, saw a 10% decline in pre-market trading.

“Today’s sell-off comes after President Donald Trump approved a working group on crypto policy last week, which notably stopped short of confirming the creation of a Bitcoin reserve,” said Petr Kozyakov, co-founder and CEO of Mercuryo. “At the same time, DeepSeek’s success has spooked tech investors, as its AI models could outpace U.S. incumbents at a fraction of the cost.”

Despite the bearish sentiment, historically, negative funding rates have often coincided with local price bottoms for Bitcoin. There’s also the risk of a short squeeze, where bearish traders close their positions, driving prices upward. However, with funding rates only narrowly turning negative, it may be too early to call the bearish trend overcrowded.

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