Bitcoin Market Sentiment Turns Bearish Amid Nasdaq Futures Drop
Bitcoin (BTC) market sentiment has shifted to bearish, influenced by a 700-point drop in Nasdaq futures. Concerns over the Chinese AI startup DeepSeek challenging U.S. tech dominance are driving risk aversion.
- Bitcoin's perpetual futures funding rates have turned negative, indicating increased bearish sentiment as traders pursue short positions.
- The price of Bitcoin has decreased over 3%, dipping below $98,000.
- Nasdaq futures fell over 3.5%, with NVIDIA down 10% in pre-market trading.
- The recent sell-off followed President Trump's approval of a crypto policy working group without confirming a U.S. bitcoin reserve.
- Historically, negative funding rates may signal local price bottoms, though there's potential for a short squeeze that could raise prices.