Bitcoin Plummets to Lowest Level in months Amid AI Market Concerns
Bitcoin experienced a meaningful price drop on Wednesday, November 5, falling to approximately $99,000 - its lowest point since June 2025. The decline signals a shift in investor sentiment, pulling back from riskier assets as concerns mount over valuations in the booming artificial intelligence sector. As of approximately 3:20 PM,Bitcoin had partially recovered to around $103,000.
The downturn extends to other major cryptocurrencies, with Ethereum also experiencing losses, dropping to around $3,340 – a level not seen as July 2025. According to CNBC, the sell-off is driven by cryptocurrency holders withdrawing from investments due to “growing concerns about the stability of share valuations” fueled by the rapid ascent of AI stocks.
this correlation between cryptocurrencies and AI stocks is a key factor in the current market movement. Large cryptocurrencies and AI stocks often attract similar investor bases, meaning a decline in the Nasdaq Composite index - which saw a drop of over 1% on Tuesday and 2% today – directly impacts cryptocurrency values.
“Bitcoin and the broader cryptocurrency market are exhausted,” stated Haonan Li,founder of the Codex stablecoin platform,in an interview with CNBC. “Even with the growth of stablecoins, growing volumes of real assets and the increasingly institutional behavior of bitcoin as a store of value – the market does not care. The bad news is very bad for cryptocurrencies right now, and the good ones barely change anything.”
However, Ed Engel, an analyst at Compass Point, predicts Bitcoin will likely remain below $100,000 but above $95,000 in the near term.
