The cryptocurrency market experienced a significant downturn as Bitcoin fell below the $100,000 mark for the first time in over four months, continuing a November sell-off that has weighed on digital assets. The sharp dip occurred early in the afternoon, though Bitcoin quickly recovered above the key threshold, trading at just above $101,000 an hour later.

Ether, the second-largest digital currency by market capitalization, also saw a notable decline, dropping more than 8% during the sell-off. Solana’s SOL token was similarly impacted, shedding over 5%. This widespread pressure on the market has mirrored recent volatility in broader risk assets, particularly on Wall Street, where technology and AI-driven stocks have also faced corrections.

Investor sentiment appears jittery, with concerns mounting about the sustainability of valuations in both stocks and crypto, especially following a period of extraordinary growth driven by artificial intelligence trends. The overlap in investor base between AI-related equities and cryptocurrencies may be contributing to the synchronized moves seen across these markets.

Elsewhere in the space, legal developments also made headlines, as Sam Bankman-Fried’s legal team requested a retrial before a federal appeals court, adding further uncertainty to the industry. Meanwhile, interest in digital asset investment products continues, such as the Bitwise Solana Staking ETF, which Bitwise CIO Matt Hougan discussed after its first week of trading on the New York Stock Exchange.

As both the crypto and tech sectors weather market corrections, investors are watching closely for further signals on the durability of recent gains and the outlook for digital assets through the remainder of the year.

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