Bitcoin (BTC) fell just below $98,000, a near 10% drawdown from all-time highs, with investors questioning the continuation of the bull run.
The fall was attributed to concerns about China DeepSeek Artificial Intelligence hyper-efficient model that competes with US industry at a fraction of the cost.
Since President Trump won the US election, bitcoin has jumped from $66,000 to new all-time highs of $109,000. During the rally, BTC hit as much as 15% twice, in addition to multiple double-digit drawdowns. Therefore, bitcoin’s 10% drop seems in line with previous drawdowns.
A reliable indicator of support during a bull market is the short-term holder cost basis, which is the average on-chain cost for coins that have moved over the past 155 days. This level is around $91,000 at the moment, which means if BTC breaks below that point, it could put a strain on the bull run.
But bearish sentiment is starting to heat up, as funding rates for bitcoin have started to go up negative. Also Arthur Hayesco-founder of Bitmex, is calling for a correction between $70,000-$75,000, before seeing $250,000. of CoinDesk Omkar Godbole also reported that bitcoin could drop to $75,000 if it triggers a so-called ‘double top’ bearish reversal pattern.
The drawdown isn’t contained to crypto alone; US markets sold off, with Nasdaq futures down as much as 4%.
