Bitcoin fell below $100,000 for the first time since June, as safe-haven sentiment impacts cryptocurrency.

Bitcoin has wiped out all the gains made over the entire summer, with the earlier surges triggered by Wall Street's enthusiasm and institutional buying being reversed. During Tuesday's New York session, Bitcoin fell by up to 6.5% to $99,963, dropping below $100,000 for the first time since June. The price has fallen over 20% from the record high reached a month ago. Ethereum saw a drop of up to 9.6%, while various alternative coins also experienced similar declines, resulting in a more than 50% drop in the prices of many tokens that are less convenient to trade and have relatively low liquidity this year. A turning point occurred in mid-October when a violent wave of liquidation wiped out billions of dollars in long positions. Since then, traders have been on the sidelines. Bitcoin futures open interest remains far below the levels before the crash, and despite some improvement in funding costs, there are still very few people willing to re-enter the market. As a result, Bitcoin has only risen by less than 10% this year, lagging behind stocks, and its effectiveness as a hedge in portfolios remains disappointing. "The drop in Bitcoin to June lows reflects a market structure that is still trying to digest the psychological aftermath of the massive liquidation event in October, which fundamentally changed the way market participants approach overall downward trends," said Chris Newhouse, head of research at Ergonia, which focuses on decentralized finance.