Bitcoin fell below $100,000 for the first time since late June: What's behind the new round of crypto volatility and how is artificial intelligence influencing it?

Bitcoin fell below $100,000 for the first time since late June: What's behind the new round of crypto volatility and how is artificial intelligence influencing it?

On Tuesday, the flagship cryptocurrency, Bitcoin (BTC) , fell below $100,000 for the first time in four months. This decline coincided with a sell-off in tech markets and growing concerns about overheating in the artificial intelligence sector.

This pullback signals a shift in investors from aggressive to more cautious strategies, and also that the digital asset market is closely intertwined with the dynamics of the stock sector , especially AI-related companies.

Bitcoin fell below $100,000 for the first time since late June: What's behind the new round of crypto volatility and how is artificial intelligence influencing it?

BTC Under Pressure: Numbers and Context

On Tuesday, Bitcoin fell to $99,966 , down about 5% on the day. This marks the first time since June 23 that the cryptocurrency has fallen below the psychologically important $100,000 mark.
At press time, BTC was fluctuating between $100,200 and $101,000, demonstrating increased volatility.

Ether (ETH) then fell almost 9% , dropping to $3,275. Analysts attribute the synchronous movement of the largest tokens to an outflow of liquidity from high-risk assets.

The AI ​​Sector and the Crypto Market: Unexpected Allies

An interesting paradox: investors actively buying AI stocks (Palantir, Nvidia, C3.ai) often also invest in cryptocurrencies. This has created a mutually reinforcing dynamic: when the AI ​​sector experiences a correction, the sell-off spreads to blockchain assets as well.

On Tuesday, the Nasdaq Composite Index fell more than 1%, reflecting a cooling of interest in AI companies after their rapid market cap growth. Palantir shares fell due to doubts about the sustainability of their overvalued multiples, despite strong quarterly reports.

"The crypto market is no longer isolated from traditional capital. It has become part of the overall technology cycle, where investor sentiment dictates the direction of asset movements," notes FX24 Research analyst Michael Rowe.

Institutionalization and market fatigue

According to expert Haonan Li, founder of the Codex (Ethereum) platform, the cryptocurrency market has reached a state of "emotional fatigue":

"Even despite the growing volume of stablecoin transactions and the acceptance of Bitcoin as an institutional store of value, the market reacts exclusively to the negative. Bad news hits cryptocurrencies harder than good news, which supports them."

This trend increases pressure on speculative positions and makes Bitcoin behave more like a hedge fund asset than an “alternative gold.”

Geoeconomic factors and global capital flows

Bitcoin's dynamics are also influenced by the macroeconomic situation in the US and Asia . Following the release of data on slowing US inflation and fluctuations in the bond market, some investors began locking in profits in high-risk assets, including cryptocurrencies.

In Asia, home to the largest mining pools and exchanges (Singapore, South Korea, Hong Kong), local regulators have tightened requirements for cryptocurrency trading. This limits liquidity and exacerbates global price fluctuations.

What's Next? Forecast and Scenarios

FX24 Analytics experts identify three scenarios for the coming quarter:

Base (60%) - consolidation in the range of $95,000–$110,000 by the end of the year.

Positive (25%) - recovery above $115,000 with growing interest in AI stocks and an influx of institutional investment.

Negative (15%) - a drop to $85,000 with increasing global liquidity outflows and rising US bond yields.

"The key indicator for Bitcoin today is not only stock indices, but also the behavior of capital in the artificial intelligence sector," emphasizes FX24 Crypto Desk analyst Emma Schultz.

Bitcoin's fall below $100,000 has become emblematic of the crypto market's new dependence on macro and tech trends . AI, once considered a separate field, is now driving investor sentiment even within the blockchain industry.

For traders, this is a signal: the era of "crypto isolation" is over , and digital assets have finally entered a unified financial ecosystem of risks, technology, and global liquidity.
By Miles Harrington 
November 05, 2025

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