For about 24 hours, the market had something to celebrate. Fresh off a Democratic sweep of the midterms, Wall Street rallied hard on Wednesday. The Dow Jones Industrial Average posted its big
For about 24 hours, the market had something to celebrate.
Fresh off a Democratic sweep of the midterms, Wall Street rallied hard on Wednesday.
The Dow Jones Industrial Average posted its biggest gain since April 2025, according to CNBC. Bitcoin (BTC) jumped back above $80,000.
By Thursday afternoon, the party was over, and one crypto trader was having a very bad day.
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On Nov. 5, the Nasdaq Composite fell 3.9%, while the Dow shed more than 1,150 points as concerns over artificial intelligence spending rattled Wall Street.
Bitcoin followed, dropping toward $76,000 and wiping out Wednesday's gains.
Crypto stocks also tumbled. Strategy (MSTR) fell 10.6%, Coinbase (COIN) lost 10.1%, and Robinhood (HOOD) dropped 10.4% as of about 1 p.m. EST Thursday.
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The selloff came amid concerns that the incoming Democratic-controlled Congress could delay crypto-friendly legislation.
The CLARITY Act, which aims to establish clearer rules for digital assets, already failed a 49-50 Senate vote in September, while Republicans controlled the chamber.
Analysts have warned that Democratic control of Congress could further complicate its passage, although broader technology-stock weakness also contributed to Thursday's decline.
According to a Nov. 5 Lookonchain post, one trader was liquidated eight times, losing positions totaling 201 BTC, worth approximately $15.6 million.
Liquidation happens when an exchange forcibly closes a leveraged position because the trader no longer has enough collateral to maintain it.
Data from Hyperbot showed seven partial liquidations totaling approximately 158 BTC, with around $220,000 in realized losses.
Source: LookOnChainThe trader then switched positions, opening a leveraged short against the Official Trump (TRUMP) memecoin, effectively betting on further price declines.
The token had already plunged on Nov. 4 following the Democratic election sweep.
At the time of reporting, TRUMP traded near $1.17, down about 18% over 24 hours, according to CoinGecko data as of 11:49 p.m. IST.
The trader's short position used 10x cross-margin leverage, meaning borrowed exposure amplified both potential gains and losses while drawing on available account collateral.
The broader market showed similar stress.
According to CoinGlass, more than 207,000 traders faced approximately $1.06 billion in liquidations across crypto exchanges over 24 hours.
