Bitcoin on Tuesday plunged below $100,000 for the first time in more than four months, as cryptocurrency holders backed off the risk-on asset amid growing concerns about the sustainability of stock valuations driven to stratospheric heights by the artificial intelligence trade.
Bitcoin was last trading 6% lower on the day at $100,870, dipping at one point as low as $99,966. Tuesday marked the first time since June 23 that the flagship cryptocurrency traded below $100,000. Ether , the second-largest cryptocurrency by market capitalization, shed nearly 10% on Tuesday to trade at $3,296.
The leading cryptocurrencies attract many of the same investors as artificial intelligence stocks, linking the two trades when one goes bad. The Nasdaq Composite, home to the leading AI stocks, dropped more than 1% Tuesday, with investors selling AI-linked Palantir on concerns about its eye-watering valuation despite the data manager's solid earnings results in its latest quarter.