Bitcoin fell victim to a risk-off mood on Tuesday, as investors dumped the cryptocurrency amid growing concerns about the sustainability of AI stock values.
Bitcoin was last trading at $103,952, down 2.5% on the day and around 6% over the past two days. Ether, the second-largest cryptocurrency by market capitalization, also saw declines, shedding 2.5% on Tuesday and losing more than 10% over two days to trade at $3,503.
Although Bitcoin’s safe-haven status has strengthened recently, the token shares many of the same large investors as artificial intelligence stocks. This overlap links the two trades, causing both to decline when one falters.
Nasdaq futures were down 1.5% on Tuesday, with investors selling AI-linked Palantir amid concerns about its sky-high valuation, despite the company posting solid earnings results.
Compass Point analyst Ed Engel also noted that retail investors may not be buying the dip as actively as before. “While selling from long-term holders is a common feature in bull markets, retail spot buyers have been less engaged than prior cycles,” he said in a note.
https://www.cnbc.com/2025/11/04/bitcoins-november-sell-off-worsens-as-investors-take-risk-off-on-worries-about-the-ai-trade-.html