Bitcoin fell on Wednesday, briefly falling below the cherished level of $100,000, as a broader sell-off in risky markets spread to cryptocurrencies due to concerns about inflated valuations.

Bitcoin also entered a bear market, falling by more than 20% from an all-time high in early October at $126,186.0.

Broader cryptocurrency prices recorded significant losses on Wednesday, continuing the decline seen earlier this week as traders shed risky assets across the board.

Bitcoin Plunged into a Bear Market after Liquidating $1.3Billion Worth of Positions

Bitcoin's losses also occurred against the background of data from the analytical company CoinGlass, which showed that earlier this week, more than $1.27 billion was liquidated in positions with leverage in the cryptocurrency market.

Most of these liquidations occurred in long positions, as traders who were betting on a further increase in the price of bitcoin were eliminated due to the sharp losses of the world's largest cryptocurrency.

Bitcoin's losses came amid a broader sell-off in global risk markets due to growing concerns about an artificial intelligence-related bubble in stock valuations.

Concerns about inflated valuations intensified after the CEOs of several major Wall Street banks warned on Tuesday of an imminent pullback, causing sharp losses in U.S. markets.

The NASDAQ Composite, which is usually followed by the prices of bitcoin and cryptocurrencies, fell by 2% on Tuesday.

The November losses came after bitcoin weakened in October, and the world's largest cryptocurrency was struggling to recover from a sharp collapse at the beginning of the month.

Mara Holdings shows strong results for the third quarter, shares are growing

Mara Holdings (NASDAQ:MARA), a major bitcoin miner and the second largest corporate holder of cryptocurrency in the world, posted better-than-expected results for the third quarter on Tuesday.

This led to a rise in the company's shares of more than 3% in post-market trading, although they still suffered losses of 6.7% during the session.

Mara recorded revenue growth of 92% year-on-year and also achieved quarterly profit. The company benefited from an increase in its bitcoin reserves during the quarter, as well as from advancing its plans to transition from bitcoin mining to AI and data center services.

Cryptocurrency Prices Today: Altcoins Fall after Bitcoin

Broader cryptocurrency prices fell across the board on Wednesday, tracking sharp losses for bitcoin.

The world's second largest cryptocurrency, Ether, fell 8.2% to $3,328.50, nearing a break below $3,000 on Tuesday. Ether also hit a near four-month low on Tuesday.

XRP fell 4% to $2,244, while BNB declined 0.4% to $945.60.

Solana declined 4.9% and Cardano lost 0.3%.

Among the meme tokens, Dogecoin rose 2.3%, while $TRUMP dropped 0.6%.