Bitcoin fell below $76,000 on November 5, losing more than 5% as a sharp sell-off in U.S. technology stocks spread through cryptocurrency markets and pushed liquidations of leveraged positions above $1 billion.

Ethereum dropped roughly 7.5% to $2,250, while Solana slid nearly 8% to $89. XRP lost more than 6%, BNB fell about 4%, and several smaller cryptocurrencies posted steeper declines as investors trimmed exposure to riskier assets.

Bitcoin briefly approached $75,000 after trading above $80,000 a day earlier, unwinding its post-election recovery. The total cryptocurrency market shed more than $120 billion in value as selling accelerated during U.S. trading hours.

The drop coincided with Wall Street's worst session since April 2025, indicating that macroeconomic uncertainty and forced liquidations — rather than a cryptocurrency-specific event — were the primary drivers.

AI Stock Rout Triggers $1 Billion in Crypto Liquidations

U.S. equities posted heavy losses on Thursday as investors reassessed the outlook for artificial intelligence infrastructure following the midterm elections. The Nasdaq Composite fell 5.5% and the S&P 500 declined 4.4%, while the Philadelphia Semiconductor Index lost approximately 12%.

Semiconductor names were hit hardest: Nvidia dropped more than 9%, AMD plunged 17%, and Broadcom fell around 10% as concerns mounted over the cost of AI infrastructure projects and their future profitability.

The sell-off followed Democratic victories in both chambers of Congress, raising concerns that additional scrutiny of data center construction, electricity consumption, and AI development could slow investment. In its November 5 market assessment, Charles Schwab identified fears of tighter data center regulation and questions around AI infrastructure financing as major contributors to the decline.

Cryptocurrency markets tracked the technology sector lower, with leveraged trading amplifying the downturn. Liquidations occur when exchanges automatically close leveraged positions whose collateral no longer covers potential losses, converting falling prices into forced selling that can extend a decline. CoinGlass liquidation data showed roughly $1.08 billion in positions liquidated over 24 hours, affecting more than 210,000 traders. Long positions accounted for about $954 million, against $127 million in short liquidations — meaning most forced closures hit traders positioned for further gains — and nearly $900 million was wiped out within a four-hour window as falling prices forced closures across derivatives markets.

Bitcoin accounted for approximately $281 million of liquidations, followed by Ethereum at $175 million and Solana at $38 million.

ETF Outflows and Binance Hack Add to Pressure

Institutional demand had already weakened before Thursday's decline. U.S. spot Bitcoin ETFs — whose daily flows are widely tracked as a gauge of institutional participation in the market — recorded roughly $1.16 billion in combined net outflows across October 30, November 2, and November 3, including $643 million on October 30 and nearly $399 million on November 2, according to Farside Investors data, reflecting reduced appetite after another stretch of volatility.

Flows briefly improved on November 4, with Bitcoin funds taking in $74.6 million and Ethereum funds attracting about $53 million. Complete November 5 figures were not yet available.

Confidence was also tested by the record $6.3 billion Binance security breach on October 29, which the FBI subsequently attributed to North Korea's TraderTraitor operation. Binance has pledged to cover customer losses and replenish affected reserves, but the incident added to an already cautious trading environment.

Attention now turns to the October U.S. employment report, due November 6, which could shape expectations for Federal Reserve monetary policy as markets gauge the outlook for interest rates. Bitcoin's failure to hold its recovery above $80,000 leaves the market sensitive to further equity volatility, ETF flows, and liquidation-driven selling. A stabilization in technology stocks could ease immediate pressure, though another wave of leveraged liquidations remains possible if cryptocurrency prices continue to fall.

Source: Crypto Adventure