Bitcoin sinks below $100,000, steepest slide since June amid global doom

• Wall Street indexes fall, leading the Nasdaq to fall.
• Traders remain cautious after the recent rally in stocks.
• Bitcoin’s decline underscores growing investor concerns.

Bitcoin fell sharply on Tuesday, falling more than 6% to fall below $100,000 for the first time since June, as the broader risk sentiment rippled through financial markets.

Major US stock indexes also fell, with tech and chip stocks particularly weak, after the CEOs of Goldman Sachs and Morgan Stanley warned stocks could be due for a pullback.

The cautious mood sent bond yields lower, while the US dollar climbed to a four-month high against the euro, adding pressure to risk assets, including cryptocurrencies.

The fall in bitcoin underscores growing investor wariness in the face of tighter currency conditions and market volatility, prompting some traders to reduce exposure to high-risk assets.

Bank chief executives warned at an investor conference in Hong Kong of the prospect of a stock market correction of more than 10% over the next two years.

Shares of Nvidia fell 4%, while the semiconductor index also fell 4%.

Shares of Palantir Technologies PLTR.O fell more than 8 percent despite the data analytics provider reporting strong quarterly results.

The company, which has more than doubled in value this year, forecast fourth-quarter results above market expectations as rapid adoption of artificial intelligence boosts demand for its services.

“Big Short” investor Michael Berry, known for his successful bets against the US housing market in 2008, has placed bearish bets on Nvidia and Palantir, according to a regulatory filing on Monday.

The S&P 500 fell more than 1% and the Nasdaq fell more than 2%. The Nasdaq is still up about 21% for the year so far.

“The market is moving higher, as justified from an earnings perspective, but at some point … it seemed to be kind of a position for a risk-back even with the slightest disappointment,” said Keith Buchanan, senior portfolio manager at Globalt Investments.

The Dow Jones Industrial Average fell 251.44 points, or 0.53%, to 47,085.24 and the S&P 500 fell 80.42 points, or 1.17%, to 6,771.55 and the Nasdaq Composite fell 486.4%, or 2.43 points, or

MSCI’s broadest index of shares around the world fell 11.51 points, or 1.14 percent, to 996.34.

The pan-European STOXX 600 index fell 0.3%.

Optimism about AI deals helped stocks. On Monday, shares gained after Amazon.com’s $38 billion cloud services deal with ChatGPT creator OpenAI.

The US dollar was supported in part by reduced bets on short-term Federal Reserve easing, with divisions within the Fed raising doubts about the prospect of another rate cut this year.

The Fed cut interest rates last week, but Chairman Jerome Powell said a December rate cut was not a foregone conclusion. Traders are betting on a 65% chance of a rate cut in December, compared with 94% a week earlier, CME FedWatch showed.

The euro EUR= fell for a fifth straight session and was down 0.3% at $1.148, its weakest since August 1. Against the yen, the dollar was 0.5% lower, although the Japanese currency remained near a recent 8-1/2-month low.

Sterling fell after the UK Chancellor of the Exchequer hinted at “difficult choices” in her upcoming budget. Sterling GBP= fell 0.72% to $1.3044.

US bond yields fell amid a broader risk tone in financial markets.

Because of the government shutdown, a monthly jobs report from the Bureau of Labor Statistics will not be available Friday as previously scheduled.

The yield on the benchmark US 10-year US10YT=RR was down 2 basis points at 4.087%, from 4.107% late on Monday.

U.S. crude CLc1 was down 49 cents at $60.56 a barrel and Brent LCOc1 was down 45 cents at $64.44. A stronger dollar weighed in.