Bitcoin falls below $100,000 for the first time since late June

Bitcoin It fell below $100,000 for the first time in more than four months as cryptocurrency holders backed away from risk-bearing assets amid growing concerns about the sustainability of stock valuations driven sky-high by AI trading.

Bitcoin was last trading at $100,870, down 6% intraday, and at one point fell as low as $99,966. EtherThe second-largest cryptocurrency by market cap was trading down nearly 10% at $3,296 on Tuesday.

Leading cryptocurrencies attract many of the same investors as AI stocks, connecting the two trades when one goes bad. Nasdaq Composite, home to leading AI stocks, fell 1 percent on Tuesday as investors sold AI-related stocks palantir There are concerns about the data manager’s eye-watering valuation despite solid earnings results in the last quarter.

missing individuals

Compass Point analyst Ed Engel said retail investors may not buy the dip as much as they have in the past.

“While selling from Long-Term Holders is a common feature in bull markets, retail spot buyers have been less engaged than in previous cycles,” he said in a note.

According to the analyst, the recent decline could push Bitcoin further into the red, pushing the token below the critical $100,000 support level.

“The fact that Long-Term Holders are still selling leaves more downside risk if Short-Term Holders capitulate further,” Engel wrote. “While we see support for BTC above $95,000, we also do not see many catalysts in the near term.”

Bitcoin’s price has trended heavily downward over the past few weeks, and October’s historically strong seasonality has not materialized this year.

Engel stated that the last time Bitcoin failed to rise was in October 2018 due to seasonal winds. In the following month, Bitcoin fell by 37% in November of the same year.