AI Disruption and Negative Funding Rates Hit Bitcoin Below $98K

DeepSeek Fears Shake Markets: Bitcoin and Nasdaq Futures Tumble
Bitcoin’s Bullish Momentum Tested: Support Level at $91K Under Threat
From $109K to $98K: What’s Next for Bitcoin Amid Bearish Calls?
Bitcoin’s 10% Pullback: A Pause or a Prelude to Deeper Corrections?

Bitcoin (BTC) has fallen just below $98,000, marking a near 10% decline from its all-time high of $109,000. Investors are now questioning whether the bull run can continue.

The sell-off has been attributed to concerns about China’s DeepSeek, an artificial intelligence (AI) model that could challenge U.S. technological dominance by delivering hyper-efficient solutions at a fraction of the cost.

Since President Trump’s election victory, Bitcoin has surged from $66,000 to record highs. During the rally, BTC has experienced multiple double-digit corrections, including two 15% pullbacks. In this context, the current 10% decline appears consistent with previous market behavior during bull runs.

A key metric for gauging support during a bull market is the short-term holder cost basis—the average on-chain acquisition cost of coins moved within the past 155 days. Currently, this level sits at approximately $91,000. If Bitcoin falls below this threshold, it could signal a more significant strain on the bullish momentum.

Bearish sentiment, however, is already rising. Bitcoin’s funding rates have turned negative, suggesting traders are increasingly betting on further declines. Arthur Hayes, co-founder of BitMEX, has predicted a potential correction to $70,000-$75,000 before a surge to $250,000. CoinDesk analyst Omkar Godbole also warned that Bitcoin could drop to $75,000 if a “double top” bearish reversal pattern is confirmed.

The downturn is not limited to the crypto market. U.S. equities are also under pressure, with Nasdaq futures falling by as much as 4%, reflecting broader risk aversion in global markets.

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