More than $1 billion in liquidations sends Bitcoin below $76,000 in broad sell-off
Key Facts
Bitcoin fell below $76,000 in trading on November 5, down 5.2% over 24 hours, while Ethereum fell 7.5%, according to CoinDesk. The decline came amid a sell-off that spread to U.S. equity markets, putting the cryptocurrency at the center of a broader retreat from riskier assets. Crypto derivatives positions saw liquidations worth more than $1 billion over 24 hours, according to data CoinDesk cited from CoinGlass. Most of the liquidated positions were bullish bets, adding to selling pressure as prices fell. The site described the liquidation wave as the largest since October 28–29, when Bitcoin fell from about $82,000 to $76,000.
The move coincided with sharp losses in U.S. stock indexes on Thursday: the Nasdaq fell 5.5%, the S&P 500 dropped 4.3% and the Dow Jones Industrial Average lost 3.4%. The Philadelphia Semiconductor Index also fell 12%, signaling mounting pressure across the technology and chip sectors. The concurrent declines again linked cryptocurrency moves to investor sentiment toward growth-related assets and AI spending. CoinDesk said Bitcoin fell about 5.5% over 24 hours in its measure, returning to levels from before Wednesday’s rally. The site reported that the move erased the gains that followed the election.
Analysts linked the pressure to concerns that the results of the U.S. midterm elections could increase opposition to data-center expansion, potentially slowing spending on AI infrastructure. CoinDesk said Tuesday’s election results gave Democrats control of both chambers of Congress, while investors continued to assess the implications. The site noted that data-center expansion is also tied to Bitcoin miners’ demand for energy and infrastructure, making any potential slowdown a focus for the sector. Carlos Guzman, vice president of research at GSR, said the midterm elections “appear to have sparked the sell-off,” adding that investors fear greater opposition could hamper data-center expansion and limit returns on AI spending. Disappointing results from chipmakers added to the pressure, according to CoinDesk.
Joshua Lim, co-head of global markets at FalconX, said fresh selling had returned to the market as the implications of a slowdown in data-center construction became clearer. CoinDesk quoted him as saying: “We’re seeing some fresh selling return to the market as the implications of a slowdown in data-center construction become clearer.” The view places Bitcoin’s move within a broader reassessment of spending expectations tied to AI, rather than developments in the cryptocurrency market alone. The Nasdaq’s decline and the semiconductor index’s fall in the same session showed risk-asset pressure across both stocks and digital currencies. Leveraged bullish positions also amplified the effect of falling prices, according to CoinDesk’s report.
After the sell-off, Jasper De Maere of Wintermute said the medium-term outlook remained positive and urged investors to watch for buying opportunities while cross-asset correlations remained elevated. CoinDesk quoted him as saying investors should “look for buying opportunities to emerge over time.” The comment came after Bitcoin fell back to levels from before Wednesday’s rally, while derivatives liquidations exceeded $1 billion. The most notable comparison cited by the site remains the October 28–29 wave, when the currency fell from about $82,000 to $76,000. The report did not specify a timeline for further developments or a target price.