Bitcoin Faces Fresh Selloff Below $76K as AI Stocks Drag Markets Lower

The gains recorded after the U.S. midterm elections quickly disappeared as investors began selling AI-related stocks. The cryptocurrency market also weakened, but digital assets showed comparatively better performance despite a liquidation wave exceeding $1 billion.

U.S. stock markets experienced their largest daily decline since President Donald Trump’s Liberation Day tariff announcement in April 2025.

The Nasdaq fell 5.5%, while the S&P 500 lost 4.3%. The Dow Jones Industrial Average (DJIA) also ended the session 3.4% lower.

The retreat from AI-related investments intensified pressure on technology stocks. The Nasdaq 100, which has a larger weighting of technology companies, dropped 6.4%, marking its worst single-day decline since the COVID-19 market crash in March 2020.

Semiconductor companies also suffered heavy losses. The Philadelphia Semiconductor Index plunged 12% on Thursday, recording its biggest daily drop since March 2020.

Bitcoin declined 5.2% over the past 24 hours, falling below $76,000. Ether (ETH) recorded a sharper 7.5% loss to $2,241.47, while XRP and Solana each slipped approximately 5.5%.

Gold moved higher as investors sought shelter from the weakness in riskier markets. Despite pulling back from its earlier peak, the precious metal maintained a 0.6% gain, trading near $4,094 per ounce.

The latest market pressure emerged as investors considered the possible effects of Tuesday’s U.S. midterm elections, which resulted in Democrats taking control of both chambers of Congress. Concerns are growing that political resistance could slow the development of data centers, potentially weakening the AI infrastructure expansion that has become an increasingly important demand driver for Bitcoin miners.

Joshua Lim, global co-head of markets at institutional crypto brokerage FalconX, said investors were returning to selling as they assessed the potential impact of slower data center construction.

He added that Wednesday’s rebound was mainly driven by traders closing short positions before an election outcome that had largely been anticipated by the market.

Carlos Guzman, vice president of research at digital asset trading firm GSR, said doubts about the returns from enormous AI infrastructure investments were already creating pressure. The midterm results have introduced another element of uncertainty for investors.

Guzman explained that greater political opposition to data center projects could postpone AI infrastructure development. This has reinforced concerns about whether the huge amounts of capital being invested in the industry will produce sufficient returns.

He also identified weaker-than-expected earnings from semiconductor companies as an additional source of selling pressure.

Crypto Market Declines as Liquidations Cross $1 Billion

Major cryptocurrencies moved lower alongside traditional markets, although their declines were less severe than those seen across several AI-related stocks.

Bitcoin lost approximately 5.5% over the previous 24 hours, reversing a large portion of Wednesday’s gains and returning toward its pre-recovery price range.

The sudden decline triggered widespread liquidations in cryptocurrency derivatives markets. Traders who had taken leveraged bullish positions were forced to close their bets as prices moved lower.

According to CoinGlass, more than $1 billion in crypto derivatives positions were liquidated over the 24-hour period. Long traders accounted for most of the forced closures. The liquidation total marked the largest such event since at least October 28–29, when Bitcoin plunged from nearly $82,000 to approximately $76,000.

Guzman said Wednesday’s recovery had received support from improved geopolitical sentiment following the election results. However, investors shifted their focus toward reducing exposure to risky assets on Thursday, while leveraged positions contributed to the speed of the decline.

Jasper De Maere of cryptocurrency market maker Wintermute warned investors against interpreting one negative trading session as evidence of a sustained market reversal.

He noted that digital assets had held up better than AI-related equities during the latest sell-off. Ongoing adoption of cryptocurrencies also remains an important factor supporting the industry’s longer-term prospects.

De Maere acknowledged that the short-term outlook remains uncertain but said he continues to expect a positive medium-term trend. He suggested that investors look for potential buying opportunities as markets adjust, particularly given the strong correlation between different asset classes.