NEW YORK: Bitcoin plunged more than 6% on Wednesday, dropping below the $100,000 mark for the first time since June. The decline came amid growing global market volatility and renewed investor caution over potential economic slowdown and tighter monetary policies.
The fall in Bitcoin followed warnings from leading Wall Street executives about a possible market correction. Investors pulled back from riskier assets, including cryptocurrencies, as concerns over slowing global growth and elevated interest rates deepened.
The leading digital asset’s drop erased months of gains that had been fueled by optimism over institutional investment and artificial intelligence-related developments. Analysts noted that Bitcoin’s fall below $100,000 marked a key psychological level, triggering additional selling pressure across crypto markets.
Major U.S. stock indexes also declined sharply. The S&P 500 fell 1.17%, the Nasdaq Composite dropped 2.04%, and the Dow Jones Industrial Average slipped 251 points, or 0.53%, closing at 47,085.24. Tech and semiconductor stocks led the downturn, with Nvidia shares tumbling 4% as part of a broader chip-sector sell-off.
Investor unease grew after Goldman Sachs and Morgan Stanley CEOs warned that U.S. equities could face a correction of over 10% within the next two years. These comments, made at an investment summit in Hong Kong, added to fears that current market valuations are overstretched.
Meanwhile, Palantir Technologies’ shares slid more than 8%, despite strong quarterly results and higher earnings forecasts. The decline came as profit-taking weighed on stocks that had surged earlier this year.
As risk appetite weakened, investors sought safety in government bonds and the U.S. dollar. The 10-year Treasury yield eased to 4.087%, while the dollar climbed to a four-month high against the euro.
Oil prices also retreated, with U.S. crude settling at $60.56 a barrel and Brent crude at $64.44. Analysts said the stronger dollar and economic uncertainty contributed to the overall market pressure.
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Despite the downturn, some experts believe the long-term outlook for Bitcoin remains supported by continued institutional interest and growing adoption in the AI and fintech sectors.
