Key points:

• Bitcoin gets hit
• Ether falls too
• What’s next?

Massive pivot away from risk assets pushed the token market below $3.4 trillion. Big selloffs across the board.

📉 Bitcoin Breaks Below the Barrier

• Bitcoin BTCUSD slid 5% on Tuesday to $100,800, briefly dipping as low as $99,900. It was the OG coin’s first trip below $100,000 in over four months.
• The broader crypto market cap sank under $3.4 trillion, marking one of the biggest single-day value losses since April.
• Ether dropped nearly 9% to $3,275, and Solana tumbled more than 20% over the past week to hover around $150.

💥 AI Euphoria Hangover Hits Crypto Too

• The selloff didn’t happen in a vacuum. Traders have been unwinding risk across markets amid growing doubts about sky-high valuations in the artificial intelligence sector.
• As tech stocks falter, particularly AI names, crypto is feeling the knock-on effect. The two trades share many of the same high-risk, high-reward investors who now appear to be taking profits and heading for safer ground.

🥇 What’s Next for Bitcoin?

• The $100,000 level has long been viewed as a psychological line in the sand. Technical traders now point to $95,000 as the next key area of support.
• Sentiment remains fragile as investors weigh whether the Federal Reserve’s recent rate cut will be enough to keep liquidity flowing – or if Powell’s cautious tone means the tightening cycle isn’t fully over.
• Early Wednesday trading came with a small bounce, but Bitcoin remains near weekly lows, with momentum indicators pointing to more jitters if stocks continue to wobble.

Source: Tradingview