Representation of the Bitcoin cryptocurrency in this illustration taken on September 10, 2025.
Dado Ruvik | Reuters
Bitcoin It fell victim to investors’ risk-off mood on Tuesday as crypto holders withdrew, raising concerns about the sustainability of stock valuations pushed to stratospheric heights by artificial intelligence trading.
Bitcoin last traded at $103,356, down 3% on the day and about 6% over the past two days. etherThe second-largest cryptocurrency by market capitalization fell 2.3% on Tuesday and is currently trading at $3,509.10, down nearly 10% in two days.
The leading cryptocurrencies attract many of the same investors as artificial intelligence stocks, linking trades between the two if one takes a turn for the worse. The Nasdaq Composite, home to major AI stocks, fell 1% on Tuesday as investors sold AI-related stocks. Palantir Regarding concerns over the data management company’s staggering valuation despite its latest quarter’s solid earnings.
absent person
Compass Point analyst Ed Engel said retail investors may not be buying as much as they have in the past.
“Selling from long-term holders is a common feature of bull markets, but retail spot purchaser involvement has declined compared to previous cycles,” he said in a note.
Analysts say the recent selloff could push Bitcoin further into the red and push the token below a key support level of $100,000.
“Long-term holders are still selling, so further downside risk remains if short-term holders give in further,” Engel said. “We see support for BTC above $95,000, but we don’t see much near-term catalyst.”
Bitcoin prices have been mostly trending down over the past few weeks, and the historically strong October seasonality did not materialize this year.
Engel pointed out that the last time Bitcoin did not rise due to seasonal tailwinds was October 2018. In November of the same year, Bitcoin plummeted by 37%.
