Bitcoin erases post-election gains as tech selloff drives over $1 billion in liquidations

what happened

Bitcoin and other cryptocurrencies gave back all of their gains from after the U.S. midterm vote on Thursday, as a steep slide in American technology and AI shares spread into digital assets, The Block reported. Bitcoin dropped 6% to $75,700 and ether lost more than 7%, to $2,247. Leveraged positions worth over $1 billion were forced to close within 24 hours.

By mid-afternoon the Dow and S&P 500 were each down roughly 3%, the Nasdaq Composite had shed 4.7%, and the VIX volatility gauge had jumped about 60%. Bitcoin-linked equities took heavy losses: Bitdeer and Keel Infrastructure each fell near 20%, and American Bitcoin lost 17% despite posting a $126 million quarterly profit. Strategy and Coinbase each slipped about 10%.

Analysts at Wintermute described Wednesday's rebound as short-lived optimism rather than a real improvement, fueled by lower oil, hopes for slower AI spending and relief over the election, all of which faded quickly against persistent macro pressure. The firm flagged two downside marks for bitcoin, at $73,000 and $68,000, and said it would only turn more positive after a convincing move back above $80,000.

why it matters

The episode shows how quickly risk appetite in tech shares can spill over into crypto, with leverage amplifying each move. Listed bitcoin miners were also under pressure, since their revenue and balance sheets track the coin's price directly, so the sector often reacts more sharply than bitcoin itself.

market impact

Crypto markets: tech selloff and liquidations pressure bitcoin and ether

• ▼Bitcoin pressure down — forced liquidations and investors pulling back from risk assets
• ▼Ether pressure down — capital leaving crypto alongside bitcoin
• ▼Bitcoin miner stocks pressure down — a lower BTC price hits miners' revenue and margins

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