Bitcoin Gives Back Election Rally as AI Stock Selloff Triggers Over $1B in Liquidations
Bitcoin fell to roughly $75,700 to $76,500 on Thursday, erasing its post-midterm rebound above $80,000 as a technology stock selloff spread into crypto. Sources differ on the size of the drop and the liquidation total, with reported figures ranging from $428 million to over $1 billion.
Written by CoinArticle’s AI Newsroom · from 2 cited sources. How we work
The Decline and Its Size
Bitcoin reversed Wednesday's post-election rally on Thursday, with Decrypt reporting a fall to about $76,500, down nearly 5%, while Crypto Briefing put the decline at 6% to approximately $75,700. Ethereum fell between 5% and 7% by the two outlets' accounts, and Decrypt reported that roughly 90% of the top 100 cryptocurrencies were in the red.
The outlets also differ on liquidations. Decrypt cited roughly $428 million in crypto longs liquidated within one hour, while Crypto Briefing described more than $1 billion in total liquidations across the session. The two figures may measure different windows or different scopes, and the sources do not reconcile them.
Wall Street and the Technology Selloff
The crypto move followed a broader equity decline. Per Decrypt, the S&P 500 lost about 2.6% in late-morning trading and the Nasdaq sank nearly 4%, approaching a 10% correction from its peak. Crypto Briefing gave a 5% decline for the Nasdaq. The Philadelphia Semiconductor Index dropped about 8% and Tesla fell roughly 9.5%, according to Decrypt.
Decrypt attributed the selloff to two sources of anxiety: the Democratic sweep of Congress, which prompted investors to reassess the data-center buildout and AI infrastructure spending, and concern about interest rates. Swissquote senior analyst Ipek Ozkardeskaya told Reuters that markets should expect "some scrutiny on this aggressive AI buildout." Crypto Briefing framed the move as broader risk-off sentiment.
Liquidation Mechanics
Decrypt's reading of the liquidation dynamics is that Wednesday's rally was partly driven by short covering, with about $378 million in short positions liquidated as Bitcoin pushed above $80,000, according to CoinGlass data. Thursday's reversal worked the other way: exchanges closed underfunded long positions automatically as prices fell, adding to selling pressure.
Pre-Existing Pressure
Decrypt reported that the crypto market had already lost roughly $300 billion in value over the prior month, amid concerns about AI spending, rising borrowing costs and the fallout from last week's multibillion-dollar Binance hack. Traders were also pricing in another Federal Reserve rate increase in December, and Decrypt noted that Friday's October jobs report could shift those expectations.
Policy Outlook for Crypto
Decrypt reported that Democratic control of Congress complicates efforts to revive the stalled Clarity Act, a proposed federal rulebook for digital assets. The new Congress does not take office until January, so no near-term legislative change is implied by the sources.
Why It Matters
For Traders
Liquidation cascades on both sides of the session suggest leveraged positions remain fragile, so watch Friday's jobs report and any follow-through below the $76,000 area.
For Investors
Crypto's correlation with Nasdaq-listed AI and tech names is re-emerging, which matters for anyone sizing digital asset exposure against an equity backdrop under pressure.
For Builders
Automatic liquidation mechanics amplified both the rally and the reversal, so protocols and exchange integrations should stress-test margin and liquidation logic under fast two-way moves.
This article is for information only and is not financial advice. Read the full disclaimer.
