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Cryptocurrency Market Slump: Bitcoin Falls Victim to November Sell-Off
Bitcoin fell victim to a wave of risk aversion on Tuesday, November 4, as investors dumped cryptocurrencies amid growing concerns about the sustainability of artificial intelligence stocks.
Bitcoin's price dropped by more than 5% during trading on Tuesday, November 4, falling below $101,000.
Ethereum, the second-largest cryptocurrency by market capitalization, declined by 2.5% on Tuesday, having lost more than 10% over two days to reach $3,503.
Solana also fell by about 6% to $155.
Despite Bitcoin's growing status as a safe haven recently, the cryptocurrency attracts many major investors, similar to artificial intelligence stocks, linking the two during periods of volatility.
Nasdaq futures fell 1.5% on Tuesday as investors sold off AI company Palantir due to concerns about its high valuation, despite the company's strong earnings results.
Compass Point analyst Ed Engle also noted that retail investors may not be buying at the lower end of the range to the same extent.
"While selling by long-term shareholders is a common feature of rising markets, spot retail buyers have been less involved than in previous cycles," he said in a note.
