Bitcoin tumbled sharply on Wednesday, briefly breaking below the key $100,000 mark as mounting concerns over inflated valuations and a broader sell-off in risk assets pushed the world’s largest cryptocurrency into bear market territory.
The token dropped 4.7% to $101,718, after hitting an intraday low of $99,010 — its weakest level since mid-June. From its record high of $126,186 in early October, Bitcoin has now fallen more than 20%, officially entering a bear market.
Data from CoinGlass showed that more than $1.3 billion in leveraged crypto positions were liquidated earlier this week, with most coming from long bets, underscoring the severity of the market’s unwind.
The decline mirrors losses across global equity markets, where the Nasdaq Composite slipped 2% amid renewed fears that the artificial intelligence boom has inflated tech valuations to unsustainable levels.
Among altcoins, Ether plunged 8.2% to $3,328, XRP fell 4%, and Solana lost 4.9%, while Dogecoin managed a 2.3% gain.
Meanwhile, Marathon Digital Holdings (NASDAQ: MARA) jumped 3% in after-hours trading after reporting a 92% surge in quarterly revenue and returning to profitability, driven by expanding Bitcoin reserves and new investments in AI and data centers.