Bitcoin (BTC) fell just below $98,000, down nearly 10% from all-time highs, with investors questioning the continuation of the bull run.
The decline was attributed to concerns about China’s DeepSeek Artificial Intelligence hyper-efficient model that competes with the US industry at a fraction of the cost.
Since President Trump won the US election, bitcoin has jumped from $66,000 to new records of $109,000. During the rally, BTC corrected as much as 15% twice, in addition to several double-digit moves. Therefore, bitcoin’s 10% decline seems to be in line with previous moves.
A reliable indicator of support during a bull market is the short-term holder cost basis, which is the average on-chain cost of coins that have moved within the last 155 days. This level is around $91,000 at the moment, which means if BTC falls below that point, it could put pressure on the bull run.
But bearish sentiment has already started to heat up as funding rates for bitcoin have started to turn negative. Also, Arthur Hayes, co-founder of Bitmex, calls for a correction between $70,000-$75,000 before seeing $250,000. CoinDesk’s Omkar Godbole also reported that bitcoin could fall to $75,000 if it triggers a so-called ‘double top’ bearish reversal pattern.
The extraction has not been limited to just crypto; US markets are selling off, with Nasdaq futures down as much as 4%.
