View of Bitcoin cryptocurrency in this illustration taken on September 10, 2025.
Dado Ruvic | Reuters
Bitcoin fell victim to investors' risky mood on Tuesday, as cryptocurrency holders retreated and grew increasingly concerned about the sustainability of stock valuations driven to stratospheric heights by artificial intelligence trading.
Bitcoin last traded at $103,952, down 2.5% on the day and around 6% over the past two days. Etherthe second-largest cryptocurrency by market cap lost 2.5% on Tuesday and has now lost more than 10% in two days to trade at $3,503.
The leading cryptocurrencies attract many of the same investors as artificial intelligence stocks, tying the two trades together if one goes bad. The Nasdaq Composite, home to the top AI stocks, fell nearly 1% on Tuesday, with investors selling AI-linked stocks. Palantir amid concerns about the eye-watering valuation, despite the data manager's solid earnings results in the last quarter.
Absent persons
Compass Point analyst Ed Engel said individual investors may not buy the dip as often as in the past.
“While selling through long-term holders is a common feature of bull markets, retail spot buyers have been less involved than previous cycles,” he said in a note.
The latest downdraft could pull Bitcoin deeper into the red, pushing the token below the critical $100,000 support level, the analyst said.
“With long-term holders still selling, further downside risk remains if short-term holders continue to capitulate,” Engel wrote. “While we see support for BTC above $95,000, we also don't see many near-term catalysts.”
Bitcoin's price has been largely downward in recent weeks, with the historically strong seasonality seen in October this year failing to materialise.
Bitcoin last failed to rise in October 2018 due to seasonal winds, Engel noted. In the month that followed, Bitcoin fell 37% in November of that year.
