Bitcoin fell sharply on Monday as anxious traders triggered another wave of selling across digital assets.
The leading cryptocurrency slid as much as 8pc, dipping below $85,000, while other major tokens such as Ether also lost ground.
The broader crypto sector has been unsettled since a major crash in early October, when roughly $400bn (£300bn) was erased from the market in less than a day.
Analysts attributed the latest decline to waning investor confidence, a trend that has also weighed on technology shares. The Nasdaq opened 0.8pc lower on Monday before clawing back part of its losses.
Juan Perez of Monex USA noted that the current pessimism appears connected to mounting worries about growing market concentration and doubts over the sector’s long-term growth prospects, citing infrastructure challenges and weakening global trade cooperation.
Additional pressure came after China’s central bank issued fresh warnings on Saturday, stating that speculation in digital currencies had re-emerged and pledging renewed action against illicit activity in the space.
The downturn is unfolding alongside rising fears of an AI-driven market bubble, prompting investors to pull back from higher-risk tech stocks and cryptocurrencies.
The total value of the crypto market has plunged from nearly $4.3 trillion (£3.3trn) in early October to just over $3 trillion (£2.3trn), a drop comparable to the entire GDP of Saudi Arabia.
Separately, shares of Strategy sank more than 11pc in early U.S. trading after the company cautioned it could face a $5.5bn loss if Bitcoin does not recover this year.
Once a modest software firm, Strategy has soared in prominence by steadily accumulating Bitcoin, becoming the biggest corporate holder of the asset. But the continued decline in Bitcoin’s price has compelled the company to set aside a $1.4bn reserve to cover future dividend and interest obligations.
