Crypto Market Rout Deepens as Bitcoin Falls Below $76,000 Amid Tech Selloff and Massive Liquidations

Why is crypto down today? Bitcoin dropped beneath $76,000 as heavy losses in semiconductor stocks triggered a broader market selloff, wiping out $1.03 billion in leveraged positions and driving $430.2 million out of Bitcoin ETFs.

The cryptocurrency market faced renewed selling pressure on Thursday, November 5, after a sharp decline across Wall Street pushed Bitcoin down approximately 6%. BTC slipped below the $76,000 threshold as leveraged traders suffered massive liquidations and institutional investors withdrew capital from U.S. spot Bitcoin ETFs. The downward momentum continued into Friday.

Bitcoin was trading around $75,700 on Binance during Friday morning, compared with $80,547 at the beginning of Thursday’s session. Ethereum declined 8.2% to $2,218, XRP lost 9.7% to $1.18, and Solana dropped 6.9% to $89.22. Market sentiment weakened alongside prices, with the Crypto Fear & Greed Index falling from 50 to 28, indicating a shift into the “Fear” category.

The technology sector was at the center of the downturn. The Philadelphia Semiconductor Index plunged 12.2%, while Nvidia and AMD shares dropped 9.3% and 17.3%, respectively. The Nasdaq Composite also declined 5.5%. Crypto-related equities followed the same trend, with Strategy losing 9.3% and Coinbase falling 9.7%.

Several factors contributed to the latest crypto correction, including weakness in technology stocks, excessive market leverage and persistent ETF withdrawals. Investors are now monitoring Bitcoin’s key technical levels to determine whether the decline will stabilize or extend further.

Why Is Crypto Down Today? Semiconductor Selloff Triggers Massive Crypto Liquidations

Bitcoin’s losses accelerated shortly after the U.S. stock market opened at 14:30 UTC. Within the following hour, BTC experienced a steep decline. Binance’s 15:00 UTC trading candle dropped from $78,288 to $75,568, with trading volume reaching $513 million during the busiest hour of the session.

Yahoo Finance’s market coverage linked the broader equity downturn to the Democrats’ decisive midterm victory and possible changes to AI infrastructure investment and regulatory policies. Semiconductor manufacturers, which had benefited substantially from the artificial intelligence boom, experienced some of the market’s largest losses.

The decline in Bitcoin was further intensified by leveraged trading activity. CoinGlass reported $1.03 billion in liquidations across the cryptocurrency market over 24 hours. These forced closures occurred when traders could no longer maintain the required margin levels.

Long positions accounted for $924.94 million, representing 89.4% of total liquidations across 199,365 traders. Bitcoin long positions lost $255.88 million, while Ether long positions recorded $163.83 million in liquidations.

The largest individual forced closure involved a $10.94 million ETHUSDT position on Binance, highlighting the scale of leveraged exposure during the market downturn.

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Bitcoin ETFs Lose $430.2 Million as Investors Reduce Exposure

U.S. spot Bitcoin ETFs recorded $430.2 million in net outflows on Thursday, with all 12 funds experiencing withdrawals. SoSoValue data showed that Fidelity’s FBTC recorded the largest outflow at $199.87 million, followed by BlackRock’s IBIT with $104.97 million.

The latest withdrawals erased the previous day’s positive momentum. On November 4, the funds collectively attracted $74.6 million, marking the only session with net inflows so far in November.

With the latest withdrawals, cumulative outflows during November’s first four trading sessions reached $869.8 million. Investors had already withdrawn another $515.9 million from Bitcoin ETFs throughout October.

Fidelity’s FBTC experienced a particularly sharp reversal. The fund attracted $236.7 million in fresh capital on Wednesday while BlackRock’s IBIT recorded withdrawals. However, FBTC surrendered much of its recent gains during Thursday’s session.

BTC Price Analysis: Bitcoin Falls Below Its 200-Day EMA

Bitcoin ended Thursday’s trading session at $76,088, moving below its 200-day exponential moving average (EMA) of $76,536. This technical indicator had previously provided support during October’s price correction.

The 50-day EMA, currently around $79,822, has emerged as the next major resistance level. A sustained recovery above this average could allow BTC to retest the $81,971 high recorded before last week’s Binance hack.

On the downside, Bitcoin’s immediate support is located near the $74,968 swing low. A breakdown below this level could expose the asset to additional losses toward $72,598, which represents the 50% Fibonacci retracement of the July-to-September rally.

Another factor worth monitoring is the derivatives market. Bitcoin perpetual futures funding rates on OKX remain slightly positive despite the recent liquidation wave. This suggests that some bullish leveraged positions are still active, leaving room for further forced closures if BTC continues to decline.

Overall, the latest crypto market weakness reflects the growing impact of the Wall Street technology selloff, particularly the sharp correction in semiconductor stocks. If chipmakers recover when U.S. trading resumes on Friday, Bitcoin could attempt to reclaim its 200-day EMA.

However, continued weakness in technology shares may keep pressure on cryptocurrency prices. A drop below $74,968 would put the next support level at $72,598 into focus, potentially extending Bitcoin’s ongoing correction.