Bitcoin tumbled under 100,000 dollars on Tuesday for the first time in more than four months, sliding as investors retreated from riskier assets amid mounting doubts about sky high stock valuations fueled by the artificial intelligence boom.
The world’s largest cryptocurrency fell about 5 percent to 100,893 dollars after briefly touching 99,966 dollars. It last traded below the 100,000 dollar mark on June 23. Ether also slumped, losing nearly 9 percent to 3,275 dollars.
The drop came as the Nasdaq Composite slipped more than 1 percent, with traders unloading AI related names such as Palantir over concerns their valuations had become unsustainable despite strong earnings.
“Bitcoin and the broader crypto market is exhausted,” said Haonan Li, founder of Codex, an Ethereum based stablecoin platform. He said even positive developments are failing to lift sentiment. “Bad news is very bad for crypto right now, and good news barely moves the needle.”
Analysts say retail investors, once known for buying sharp dips, appear less active than in previous cycles. Ed Engel of Compass Point warned that continued selling by long term holders could push Bitcoin further below its key support range.
He said the token may find support above 95,000 dollars but noted a lack of short term catalysts to reverse the downtrend. Bitcoin has drifted lower for weeks, bucking its typically strong October pattern. The last time seasonal gains failed to materialize in October was in 2018, when Bitcoin sank 37 percent the following month.
The latest slide raises fears that the digital asset could enter a deeper correction if sentiment continues to deteriorate.
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