Bitcoin slid below $76,000 as a wave of forced selling swept through cryptocurrency markets, wiping out more than $1 billion of leveraged positions in a single day. The world’s largest digital asset fell about 6% to its lowest level in roughly a month, while ether dropped more than 7%, according to market data compiled by CoinGlass and reports from several crypto-focused outlets.
The sell-off spilled over from a sharp decline in technology shares on Wall Street, where concerns over the returns on artificial intelligence spending pushed the Nasdaq Composite down about 5.5% on Thursday. Listed crypto and retail-trading platforms bore the brunt, with Coinbase and Robinhood both posting double-digit intraday losses.
The episode underlines how closely digital assets and fintech stocks now trade with broader risk sentiment. It also erases much of the brief rally that followed this week’s US midterm elections, leaving investors to reassess exposure to the most volatile corners of the market.
Key Takeaways
- Bitcoin fell about 6% to trade near $75,700, its weakest level in around a month.
- CoinGlass data showed roughly $1.09 billion of crypto positions liquidated in 24 hours, nearly 90% of them long bets.
- Coinbase shares fell close to 10% and Robinhood around 12% during Thursday’s session.
- Analysts linked the slide to a broad technology sell-off rather than any single crypto-specific trigger.
Leveraged Bets Unwind Rapidly
Liquidations totalled about $1.09 billion over the 24 hours to Thursday, with long positions accounting for roughly $955 million, according to CoinGlass figures cited by FinanceFeeds and StockTwits. Later rolling readings published on Friday put the total above $1.2 billion as selling continued during Asian trading hours.
Bitcoin traded around $75,900 in the early hours of Friday, having briefly touched levels near $75,200, according to exchange data. The asset had climbed back above $80,000 on Wednesday before the rebound faded. Ether fell to about $2,240, while the total value of the crypto market dropped roughly 5% to around $2.6 trillion.
Market participants noted that liquidation figures reflect the notional value of positions forcibly closed rather than total investor losses. Even so, the scale of the unwind indicates that traders had rebuilt substantial leverage in perpetual futures during the post-election bounce, leaving the market vulnerable to a sharp reversal.
Crypto and Fintech Stocks Slump
The slide hit companies whose revenues depend on trading activity. Coinbase shares closed down about 9.7% on Thursday, while Robinhood fell around 12% in afternoon trade, according to market reports. Bitcoin treasury company Strategy and several listed miners also recorded steep losses as investors reduced exposure to crypto-linked equities.
The weakness extended a difficult week for growth-oriented financial technology names. Larger, more diversified payments groups such as PayPal and Block declined more modestly, suggesting that investors were targeting the most volatile segments of the sector rather than exiting fintech altogether.
The moves came a day after big technology stocks rallied while data centre names slid in the wake of the Democratic midterm sweep, a divergence that has since given way to broad selling across AI-linked shares.
Technology Rout Drives Risk Aversion
Analysts at several trading firms pointed to concerns over slowing investment in AI infrastructure as a key driver of the wider retreat, according to reports. Qualcomm shares fell more than 9% after weak guidance, adding to pressure on chipmakers and technology benchmarks.
Several market observers cautioned that the timing of the decline did not by itself establish the election result as the direct cause. Nonetheless, the shift in control of Congress has added uncertainty over the outlook for US digital asset legislation, an issue that has repeatedly stalled, as seen in earlier party-line divisions over the crypto market framework in the Senate.
The sell-off also tests institutional appetite for the asset class. Banks have continued to build crypto capabilities over the past year, including Standard Chartered’s expansion of institutional crypto trading into the UAE, and sustained volatility could slow the pace at which corporate clients commit capital.
Investors Weigh Next Catalysts
Attention now turns to the latest US labour market data, which could shape expectations for interest rates and, by extension, demand for risk assets. Rate-sensitive fintech lenders and trading platforms are likely to remain particularly exposed to any further repricing.
Traders will also watch flows into US-listed spot bitcoin exchange-traded funds and funding rates in derivatives markets for signs of whether leverage has been flushed out. A stabilisation in technology shares would likely be needed before crypto prices can mount a sustained recovery.
Looking ahead, the near-term path for bitcoin and crypto-linked equities appears closely tied to sentiment around AI spending and US policy direction. While the latest liquidation wave has reduced some of the excess leverage in the system, further volatility is likely as investors digest economic data and the implications of a new balance of power in Washington for the fintech and digital asset industries.
