Bitcoin price drops under $98K as markets sell-off following DeepSeek AI launch
Bitcoin price fell to $97,754 as crypto and stock markets digested the significance of a China-based ChatGPT AI competitor called DeepSeek.
Bitcoin (BTC) experienced a surprising 7% correction on Jan. 27, briefly dropping below $98,000 for the first time in over 10 days. Regardless of the factors driving this movement, Bitcoin’s price is struggling to reclaim the $100,000 support level, prompting traders to question whether the bullish momentum has dissipated.
Bitcoin derivatives metrics remained stable despite the $7,320 price drop to $97,754, suggesting that whales and arbitrage desks were prepared for the downturn. However, stablecoin metrics from Chinese markets indicate that cryptocurrency demand in the region remains subdued.
The Bitcoin futures annualized premium, which measures how monthly contracts trade relative to the spot market, provides a key insight into leverage demand. Premium levels between 5% and 10% are considered neutral, while values above this range reflect optimism.
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Author: Marcel Pechman
