Bitcoin, the worlds largest and most valuable cryptocurrency, fell by more than 5% on Wednesday to its lowest level in months, trading below the $100,000 mark after peaking at an all-time high above $126,000 in early October. The token later pared some losses to trade around $102,000.

The decline extends a broader downtrend that began during what traders now call the Black Friday of the crypto market in mid-October, which led Bitcoin to record its first October loss since 2018.

It remains unclear whether these losses will evolve into a broader market contraction something some analysts view as a natural correction phase in the digital asset cycle or if they will attract new investors looking to buy the dip.

According to CoinMarketCap, the crypto markets Fear and Greed Index which gauges investor sentiment slipped into the fear zone on Tuesday after remaining neutral last week, signaling declining confidence across the sector.

Bitcoins drop below $100,000 the first since May also coincides with accelerating outflows from spot Bitcoin exchange-traded funds (ETFs).

Data from SoSoValue showed that BlackRocks iShares Bitcoin Trust (IBIT), Fidelity Wise Origin Bitcoin Fund (FBTC), and Grayscale Bitcoin Trust (GBTC) saw a combined $1.3 billion in net outflows since October 29.

Spot Ether funds also recorded withdrawals totaling around $500 million during the same period.

Alternative cryptocurrencies (altcoins) such as Ether (ETH) and Solana (SOL) came under heavier pressure, both plunging more than 8%. The sell-off extended to Bitcoin-linked equities, including MicroStrategy, Coinbase Global, and Robinhood, all of which fell by over 6% and continued to slide in after-hours trading.

Still, some Bitcoin optimists held firm. MicroStrategy, founded by longtime Bitcoin advocate Michael Saylor, announced on Monday that it purchased an additional 397 BTC between October 27 and November 2 at an average price of $114,771 per coin.

As of 14:27 GMT, Bitcoin was down 1% at $102,600 on CoinMarketCap.