Bitcoin tumbled more than 6% on Tuesday, dropping below $100,000 for the first time since June as investors turned risk-averse. The sell-off came amid broader weakness in global markets and growing concern about a potential equity correction.
Major US stock indexes fell sharply, with tech and chip stocks leading declines. The Nasdaq Composite dropped 2.04%, while the S&P 500 fell 1.17%, and the Dow Jones Industrial Average lost 0.53%. The sell-off followed warnings from Goldman Sachs and Morgan Stanley CEOs, who predicted a potential 10% market correction within two years.
Investor caution deepened as Treasury yields slipped and the US dollar climbed to a four-month high against the euro, pressuring risk assets such as cryptocurrencies. The MSCI global index fell 1.14%, while Europe’s STOXX 600 declined 0.3%.
In the US, Nvidia shares sank 4%, dragging semiconductor stocks lower. Palantir Technologies plunged 8% despite strong earnings and upbeat forecasts driven by AI adoption. Investor Michael Burry, famous for “The Big Short,” reportedly placed bearish bets on both Nvidia and Palantir.
“Markets were due for a pullback,” said Keith Buchanan, senior portfolio manager at Globalt Investments. “Even a small disappointment could trigger a risk-off move.”
Oil prices also weakened as the stronger dollar pressured commodities. US crude settled at $60.56 a barrel, while Brent closed at $64.44.
The Federal Reserve’s cautious tone added to uncertainty. Although the Fed cut rates last week, Chair Jerome Powell said a December cut was not guaranteed. Traders now see a 65% chance of another rate cut, down from 94% last week, according to CME FedWatch.
