Bitcoin plunged below $76,000 on November 5, losing more than 5% as a sharp sell-off in U.S. technology stocks spread across cryptocurrency markets and triggered over $1 billion in leveraged
Bitcoin plunged below $76,000 on November 5, losing more than 5% as a sharp sell-off in U.S. technology stocks spread across cryptocurrency markets and triggered over $1 billion in leveraged position liquidations.
Ethereum dropped approximately 7.5% to $2,250, while Solana fell nearly 8% to $89. XRP declined more than 6%, BNB lost roughly 4%, and several smaller cryptocurrencies suffered steeper losses as investors reduced exposure to riskier assets.
Bitcoin briefly approached $75,000 after trading above $80,000 a day earlier, reversing its post-election recovery. The broader cryptocurrency market lost more than $120 billion in value as selling accelerated during U.S. trading hours.
The decline coincided with Wall Street’s worst session since April 2025, suggesting that macroeconomic uncertainty and forced liquidations, rather than a cryptocurrency-specific event, were the primary drivers.
U.S. equities suffered substantial losses on Thursday as investors reassessed the outlook for artificial intelligence infrastructure following the midterm elections.
The Nasdaq Composite fell 5.5%, while the S&P 500 declined 4.4%. Semiconductor stocks were hit particularly hard, with the Philadelphia Semiconductor Index losing approximately 12%.
Nvidia declined more than 9%, AMD plunged 17%, and Broadcom dropped around 10% as concerns intensified over expensive AI infrastructure projects and their future profitability.
The sell-off followed Democratic victories in both chambers of Congress, prompting 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 surrounding AI infrastructure financing as major contributors to the decline.
Cryptocurrency markets followed the technology sector lower, with leveraged trading accelerating the downturn.
CoinGlass liquidation data showed approximately $1.08 billion in positions liquidated over 24 hours, affecting more than 210,000 traders.
Long positions accounted for roughly $954 million, compared with $127 million in short liquidations. Nearly $900 million was liquidated within a four-hour period as falling prices triggered forced closures across derivatives markets.
Bitcoin accounted for approximately $281 million in liquidations, followed by Ethereum at $175 million and Solana at $38 million.
Institutional demand had already weakened before Thursday’s decline.
U.S. spot Bitcoin ETFs recorded approximately $1.16 billion in combined net outflows across October 30, November 2 and November 3.
The withdrawals included $643 million on October 30 and nearly $399 million on November 2, reflecting reduced investor appetite following another period of market volatility.
ETF flows briefly improved on November 4, with Bitcoin funds attracting $74.6 million and Ethereum funds receiving approximately $53 million. Complete November 5 flow figures were not yet available.
Confidence had also been tested by the record $6.3 billion Binance security breach on October 29, which the FBI subsequently attributed to North Korea’s TraderTraitor operation.
Although Binance has pledged to cover customer losses and replenish affected reserves, the incident contributed to an already cautious trading environment. Attention now turns to the October U.S. employment report, scheduled for November 6, which could influence expectations for Federal Reserve monetary policy.
Bitcoin’s failure to sustain 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 reduce immediate pressure, although another wave of leveraged liquidations remains possible if cryptocurrency prices continue falling.
The post Bitcoin Drops Below $76K as Crypto Liquidations Top $1B appeared first on Crypto Adventure.
