Bitcoin’s November sell-off worsens as investors take risk off on worries about the AI trade

Bitcoin fell victim to a risk-off mood Tuesday with investors dumping the cryptocurrency as they grew increasingly concerned about the sustainability of AI stock values.

Bitcoin was last trading at $103,952, down 2.5% on the day and around 6% in the past two days. Ether, the second-largest cryptocurrency by market capitalization, shed 2.5% on Tuesday and had lost more than 10% over two days to trade at $3,503.

Although bitcoin’s safe haven status has grown lately, the token courts many of the same large investors as artificial intelligence stocks, linking the two trades when on goes bad. Nasdaq futures were down 1.5% on Tuesday, with investors selling AI-linked Palantir on concerns about its eye-watering valuation, despite the company’s solid earnings results.

Compass Point analyst Ed Engel also noted retail investors may not be buying the dip as much.

“While selling from Long-term Holders is a common feature in bull markets, retail spot buyers have been less engaged than prior cycles,” he said in a note.