Bitcoin (BTC) continues to struggle amid a broader pullback in risk assets such as cryptocurrencies.
The price of Bitcoin is currently at $102,000 U.S. and the largest digital asset by market capitalization continues to test the key support level of $100,000 U.S.
In the past week, BTC fell below $100,000 U.S. for the first time since June of this year as investors turn more risk averse.
Bitcoin’s price has been sliding lower for a month and is down from an all-time high of $126,000 U.S. reached in early October.
The continued struggles for Bitcoin come amid a broader pullback among cryptocurrencies, with Ethereum’s (ETH) price failing to maintain $3,500 U.S.
Analysts note that cryptocurrency prices are slipping alongside technology stocks that are closely associated with the artificial intelligence (A.I.) boom.
Concerns about valuations and a potential bubble have led many investors to begin rotating out of high-flying names such as Nvidia (NVDA) and Meta Platforms (META).
Analysts also say that a breakdown in Bitcoin’s price below $100,000 U.S. could lead to a greater decline, with the price potentially dropping as low as $85,000 U.S.
There had been hope that the reopening of the U.S. federal government in Washington, D.C. would spur a recovery in crypto.
But news that October economic data might never be released by the Trump administration is further weighing on crypto asset prices.
BTC is up 10% on the year, trailing a 17% gain in the benchmark S&P 500 stock index.
