The world’s leading cryptocurrency fell 5% and dropped below the $100,000 mark during trading on November 4, reflecting concerns over the sustainability of AI technology stocks.
Bitcoin is currently down 5% to $100,893, after touching an intraday low of $99,966. This marks the first time since June 23 that the cryptocurrency has traded below the $100,000 level. Ether, the second-largest cryptocurrency, also plunged nearly 9% to $3,275.
Market experts noted that cryptocurrencies and AI technology stocks often attract the same group of investors, creating a close correlation between the two sectors when either faces difficulties. The Nasdaq Composite — home to leading AI-related stocks — fell more than 1% on November 4, as investors sold off Palantir shares amid concerns over excessive valuations, despite the company’s relatively strong quarterly results.
“Bitcoin and the crypto market as a whole are exhausted,” said Haonan Li, founder of the Ethereum-based stablecoin platform Codex, in an interview with CNBC. “Even with the growth of stablecoins, rising real-world asset trading volumes, and Bitcoin’s increasing role as a store of value for institutions, the market still seems largely indifferent. Right now, bad news hits crypto prices hard, while good news barely moves the needle.”
Compass Point analyst Ed Engel observed that retail investors appear to be buying less aggressively during price declines compared with previous market cycles. “While long-term holders selling is a common feature in bull markets, retail participation has been weaker than in past cycles,” he noted.
According to Engel, the latest downturn could drive Bitcoin even lower, pushing it below the key $100,000 support level for an extended period. “As long-term holders continue to sell, downside risks will persist if short-term investors also capitulate. Although we see some support for Bitcoin above $95,000, we don’t see many positive catalysts in the short term,” he added.
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