Bitcoin’s price has experienced a sharp decline this week, dropping below the $101,000 mark on Tuesday, marking a 8% loss over the past five days. This move follows a broader downturn in risk assets, specifically mirroring the Nasdaq 100 futures which fell by 1.67%. Analysts suggest that Bitcoin’s decline is primarily driven by sentiment rather than fundamental shifts. According to Ecoinometrics, the current environment is characterized by loose financial conditions and record high equity market valuations, indicating a lack of clear fundamental drivers for the recent dip. Despite this correlation with risk markets, analysts highlight the importance of considering factors like investor behavior and market dynamics.