Bitcoin experienced another turbulent day as prices fell sharply and market sentiment turned negative. These fluctuations occurred simultaneously with the decline of the Nasdaq index on Wall Street and pressure from DeepSeek – a low-cost AI startup from China.

Bitcoin Plummets, Negative Funding Rates

According to data from #VeloData , the funding rates of Bitcoin futures have turned negative. This is a sign that the market is leaning towards 'short' – traders expect prices to continue to decline.

As of Tuesday morning, the price of Bitcoin has dropped more than 3%, at one point falling below 98,000 USD.

Nasdaq Futures 'Bleed' 700 Points

The US financial market is no better. #NasdaqFutures , an index focused on major tech stocks, has dropped by as much as 3.5%, equivalent to 700 points. Nvidia – a symbol of the AI industry – lost 10% of its value in pre-market trading.

This decline is believed to stem from concerns that DeepSeek – an AI startup from China – will undermine the technological leadership of the US. With a super-efficient operating model, DeepSeek demonstrates that it can create advanced AI solutions at a much lower cost than major competitors in the US.

Will Bitcoin Recover?

Although negative funding rates often indicate pessimistic sentiment, this is not necessarily bad news. History shows that times when funding rates turn negative often mark local bottoms, with the potential for a 'short squeeze' – a phenomenon where prices rise rapidly when short sellers are forced to close their positions.

However, experts warn that it is still too early to assert that the market is overloaded with 'short' orders.

DeepSeek and Global Impact

Petr Kozyakov, CEO of #Mercuryo , commented that DeepSeek has created a major shock, not only for the technology market but also for the crypto sector. The success of this startup poses a significant challenge to American AI companies, which are spending billions of dollars to maintain their leading position.

In that context, the widespread concern from traditional financial markets to crypto is understandable.

Conclusion

The Bitcoin market and the global financial system are under significant pressure, from the decline of major indices to shocks from Chinese technology. While there is still hope for a short-term recovery, the current uncertainty serves as a reminder that investors need to be more cautious in all decisions.