Bitcoin sinks below $76,000 to seven-week low as AI stock rout wipes out post-election rally
Bitcoin fell to $75,463, its lowest since mid-September, as a sharp sell-off in AI and chip stocks dragged the Nasdaq to its worst day since April and wiped out more than $1 billion in leveraged crypto bets.
Bitcoin fell below $76,000 on Thursday, 5 November, sinking to its lowest level in seven weeks as a rout in artificial intelligence stocks swept through Wall Street and erased the post-election rally that had carried it back above $80,000 only a day earlier.
The largest cryptocurrency traded as low as $75,463 on the Bitstamp exchange, its weakest price since 16 September, after shedding more than 6 per cent in the session. It was down roughly 5.5 per cent over 24 hours and briefly dipped below its 50-week moving average near $75,733, a level technical traders watch as long-term support. Figures checked at 02:20 PKT on Friday, 6 November 2026.
Equities set the tone for the fall. The Nasdaq Composite sank nearly 6 per cent, on course for its worst day since the tariff-driven sell-off in April 2025, while the Nasdaq-100 fell 6.4 per cent and an index of chip stocks plunged more than 10 per cent in early trading. The S&P 500 lost about 2.7 per cent, giving back Wednesday's gain, which had been its strongest in three months.
The trigger was a rapid reassessment of the AI boom after Tuesday's midterm elections handed the Democrats control of both chambers of Congress. Investors began to worry that greater political opposition could slow the construction of the data centres powering the AI trade, a business that has become increasingly important for bitcoin miners, many of which have been shifting capacity towards AI computing.
“We're seeing some fresh selling come back to the market as the implications on slower datacenter build out enter into focus,” said Joshua Lim, global co-head of markets at institutional crypto brokerage FalconX. He added that Wednesday's post-election relief rally had been driven largely by short-covering into a well-telegraphed result.
Disappointing earnings from chipmakers added to the pressure. Carlos Guzman, vice president of research at digital asset trading firm GSR, said investors were already questioning the returns on the vast sums being poured into AI infrastructure, and the election result had added another headache. “The midterms appear to have triggered this sell-off, with investors worried that greater opposition to data-centre expansion could slow the AI buildout,” he said.
Crypto-linked stocks were caught squarely in the selling. Coinbase, the largest US crypto exchange, stablecoin issuer Circle and custody firm BitGo fell between 10 and 15 per cent, while bitcoin treasury company Strategy lost 9.6 per cent. Crypto miners, many of which have been pivoting towards AI computing, tumbled 15 to 20 per cent.
The wider crypto market fell with bitcoin. Ether dropped about 7 per cent to around $2,237, while Solana, XRP and Hyperliquid suffered slightly steeper losses of 6 to 7 per cent. Total cryptocurrency market capitalisation fell roughly 5 per cent to about $2.65 trillion.
The reversal came with a wave of forced selling in derivatives markets, where traders had piled into leveraged bets on higher prices. More than $1 billion in crypto derivatives positions were liquidated over 24 hours, according to CoinGlass, most of them bullish bets — the largest wipeout since at least 28–29 October, when bitcoin tumbled from nearly $82,000 to $76,000.
The speed of the turnaround was striking. On Wednesday, bitcoin had climbed back above $80,000, the Dow had jumped 3 per cent and the S&P 500 nearly 2 per cent, while Brent crude fell almost 9 per cent to about $95 a barrel, as investors decided the election result cleared up more than it threatened. By Thursday, that optimism had flipped. “We had a relief rally yesterday that seemed to be happening on optimism about the geopolitical situation due to the midterm results,” Guzman said. “The situation appears to have flipped today with a pullback in risk appetite amplified by leverage.”
Not everyone read the day as a turning point. Jasper De Maere of trading firm Wintermute cautioned against reading too much into a single session, noting that crypto had held up relatively well amid the turmoil in AI stocks while broader adoption continued to strengthen the longer-term outlook. “Let's see where we land in the short term here, medium term still glass half full,” he said. Traders now look to Friday's October jobs report, with inflation data due on 10 November, and to whether bitcoin can hold support around $75,000, a level that has held repeatedly since August.
This post is market news information only, not financial advice.
More in Crypto & Markets
Photo: The Nasdaq tower in New York's Times Square (file image)
Crypto & MarketsNasdaq approves Canary Capital's staked Injective ETF under ticker INJC as INJ jumps
Nasdaq has approved the listing of Canary Capital's Staked Injective ETF, the first US-listed staked product for INJ, with trading to begin once its S-1 registration becomes effective.
Photo: A golden Bitcoin coin (file image)
Crypto & MarketsBitcoin reclaims $80,000 as post-election rally sweeps crypto markets
Bitcoin climbed back above $80,000 on 5 November after dipping toward $75,700, as crypto markets joined a wider rebound following the US midterm elections.
Photo: A physical Bitcoin token (file image)
Crypto & MarketsBitcoin surges past $80,000 as a short squeeze wipes out hundreds of millions in bearish bets
Bitcoin climbed back above $80,000 on 4 November, briefly passing $81,100, as forced closures of short positions accelerated the rally after an earlier dip below $76,000.