Bitcoin Falls to $75,871 as AI Stock Selloff Erases Election Rally
Bitcoin fell 5.4% to $75,871 and Ethereum dropped 7.6% to $2,239 as a sharp selloff in AI-linked equities reversed the post-election rally. Roughly $1.1 billion in crypto long positions were liquidated, according to Decrypt, while CoinDesk put the total liquidation wave at about $1 billion.
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The Reversal Across Markets
Bitcoin fell 5.4% to $75,871, below its level before the U.S. election, after trading above $80,800 earlier in the week. Ethereum dropped 7.6% to $2,239, a steeper decline than the Nasdaq. XRP lost 9.8% and Hyperliquid fell 4.9%, while the CMC20 index fell 6.29%.
The S&P 500 fell 4.36% on the day, its worst session since the April 2025 tariff announcements. The Nasdaq dropped 5.52% and closed in correction, more than 10% below its record from last month. The Dow shed 1,833 points.
Where the Selloff Concentrated
The damage was concentrated in semiconductors and AI-linked names. The iShares Semiconductor ETF fell more than 12%, its worst day since March 2020. Micron lost 17.5%, AMD 17.3%, Marvell 16.4% and Nvidia 9.3%. The Magnificent Seven shed roughly $1 trillion in market value, and the VIX touched 28.09 intraday, its highest since March.
Decrypt reported that U.S. equities lost $3 trillion in value by the close, a figure it noted exceeded the entire market capitalization of crypto.
Why the Election Result Turned Negative
The catalyst was the same Democratic outcome that lifted markets a day earlier. Several states where Democrats won have active local opposition to data center construction, and investors spent Thursday pricing in slower permitting and tighter oversight of the AI buildout. Ipek Ozkardeskaya of Swissquote said, "We suspect there is going to be some scrutiny on this aggressive AI buildout."
Rate expectations also moved. Decrypt reported that odds of a December rate hike fell to 70.1% from 82.7%.
Liquidations and Relative Resilience
CoinDesk reported the liquidation wave at about $1 billion, while Decrypt put crypto long liquidations at roughly $1.1 billion on the day. The two figures differ slightly, likely reflecting different data sources and time windows, and both sources agree the flush was followed by a modest overnight relief rally.
CoinDesk characterized crypto as having held up relatively better than equities on a proportional basis, citing a Wintermute trader's view that the market was "glass half full." Decrypt noted that Zcash fell 0.8% and Monero 2.2%, both smaller declines than the broader market, and both remained higher on the week. Over the past year, Decrypt reported Zcash up 146% and Monero up 74%, against declines of 26% for Bitcoin and 34% for Ethereum.
What Comes Next
Traders are watching Friday's October jobs report, the next scheduled macro catalyst. Decrypt observed that the market read the same political outcome in two opposite ways within two sessions, a pattern that leaves the direction of near-term positioning uncertain.
Why It Matters
For Traders
Liquidation-driven volatility and a pending jobs report make near-term crypto price action sensitive to rate-hike odds and equity sentiment.
For Investors
Crypto's correlation with AI-linked equities is being tested, and relative strength in privacy coins may signal shifting risk appetite over months.
For Builders
Sharp liquidation waves highlight the need for robust margin and oracle design during fast cross-asset moves in perpetuals markets.
This article is for information only and is not financial advice. Read the full disclaimer.
