Today’s crypto markets experienced significant turbulence, with Bitcoin plunging below the $100,000 mark for the first time in over four months. This latest sell-off mirrors the broader pressure impacting risk assets across Wall Street. Shortly after the midday drop, Bitcoin quickly rebounded above $100,000, trading near $101,217 an hour later.

Ether, the second-largest cryptocurrency by market capitalization, also faced notable losses, dropping over 8%. Other major tokens like Solana recorded declines as well, with Solana’s token falling more than 5%.

These downward movements in crypto reflect growing unease among investors over the sustainability of stock valuations, especially those driven sharply higher by enthusiasm around artificial intelligence. Both AI and crypto sectors attract similar investor profiles, resulting in parallel market trends. The Nasdaq Composite, known for its concentration of leading AI companies, also experienced declines alongside the crypto markets.

As digital asset investors assess these developments, market volatility remains elevated, and the correlation between high-growth tech stocks and cryptocurrencies is increasingly apparent. This environment raises fresh questions about the resilience of current market trends and the interplay between emerging technologies and investment strategies.