Bitcoin dropped under the $100,000 threshold — the first time in over four months — as investors pulled back from riskier assets amid renewed doubts about inflated stock valuations fueled by the artificial intelligence boom.

The cryptocurrency slid roughly 5% on Tuesday to around $100,893, briefly touching $99,966. It’s the first dip below six figures since June 23.

Ether, the second-largest digital asset by market cap, tumbled nearly 9% to trade at $3,275.

Crypto assets and AI-related equities often move in tandem, sharing a common investor base. That connection was evident Tuesday as the Nasdaq Composite fell more than 1%, with traders retreating from AI-linked names like Palantir. Despite strong quarterly results, Palantir’s lofty valuation raised fresh skepticism.

“The crypto market is clearly fatigued,” said Haonan Li, founder of the Ethereum-based stablecoin platform Codex, in an interview with CNBC. “Even with stablecoin expansion, higher real-world asset volumes, and Bitcoin’s evolving role as an institutional store of value — sentiment remains negative. Bad news hits hard, and good news barely registers.”

According to Compass Point analyst Ed Engel, retail investors appear less eager to “buy the dip” than in previous cycles.

“Selling by long-term holders is typical during bull markets, but we’re seeing weaker participation from smaller, spot buyers,” Engel noted. He warned that if short-term traders continue capitulating, Bitcoin could face additional pressure.

Engel added that while there is technical support above $95,000, few near-term catalysts exist to spark a recovery.

Bitcoin’s recent slide extends a multiweek decline, defying the digital asset’s usually strong October performance.

Engel pointed out that the last time Bitcoin failed to benefit from October seasonality was in 2018 — a slump that preceded a 37% crash in November that year.