Bitcoin Crashes to $76K as AI Stock Selloff Triggers Wall Street Rout

The rally that followed the U.S. midterm elections quickly lost momentum as AI-related stocks suffered steep declines. Cryptocurrencies also moved lower, although they showed relative resilience despite more than $1 billion in liquidations across the market.

U.S. equities recorded their sharpest single-day losses since President Donald Trump announced his Liberation Day tariffs in April 2025.

The Nasdaq dropped 5.5%, while the S&P 500 declined 4.3% and the Dow Jones Industrial Average (DJIA) lost 3.4%.

The ongoing unwinding of the AI trade weighed heavily on major indexes. The Nasdaq 100, which has greater exposure to technology stocks than the broader Nasdaq, plunged 6.4%, marking its worst trading day since the COVID-19 market panic in March 2020.

The Philadelphia Semiconductor Index also suffered a steep setback, falling 12% on Thursday. It was the index’s largest daily decline since March 2020.

Bitcoin lost 5.2% over the previous 24 hours, trading just below $76,000. Ether (ETH) fell 7.5% to $2,241.47, while XRP and Solana each declined 5.5%.

Gold moved in the opposite direction, gaining ground as risk-sensitive markets came under pressure. Although the precious metal retreated from its earlier peak, it remained up 0.6% at approximately $4,094 per ounce.

The downturn unfolded as investors assessed the potential consequences of Tuesday’s U.S. midterm elections, which gave Democrats control of both chambers of Congress. Market participants are concerned that stronger political resistance could delay data center construction, potentially disrupting the AI expansion that has become an increasingly important source of demand for Bitcoin miners.

“Fresh selling pressure is returning as investors begin to consider what slower data center development could mean for markets,” said Joshua Lim, global co-head of markets at institutional crypto brokerage FalconX.

He explained that Wednesday’s post-election recovery was largely supported by traders closing short positions ahead of an outcome that markets had broadly anticipated.

Carlos Guzman, vice president of research at digital asset trading firm GSR, said concerns about whether massive investments in AI infrastructure would generate sufficient returns were already weighing on sentiment. The election outcome has introduced another source of uncertainty, he added.

Guzman said investors fear that increased opposition to data center projects could delay the AI infrastructure expansion. This has intensified existing doubts about the profitability of the enormous sums being invested in the sector.

He also pointed to weaker-than-expected earnings from semiconductor companies as another factor contributing to the market pressure.

Crypto losses remain relatively contained despite liquidation surge

Major cryptocurrencies experienced declines, but their losses were comparatively smaller than those recorded by several stocks closely linked to the AI sector.

Bitcoin fell approximately 5.5% over the past 24 hours, giving back much of Wednesday’s advance and returning toward its pre-rally trading range.

The reversal triggered widespread forced closures in derivatives markets, where traders had accumulated leveraged positions betting on further price increases.

Data from CoinGlass showed that more than $1 billion worth of crypto derivatives positions were liquidated during the 24-hour period, with bullish positions accounting for most of the losses. It was the largest liquidation event since at least October 28–29, when Bitcoin dropped from nearly $82,000 to around $76,000.

Guzman said the previous day’s recovery had been supported by optimism surrounding the geopolitical outlook following the midterm results. However, sentiment shifted on Thursday as investors reduced exposure to riskier assets, with leveraged positions intensifying the decline.

Jasper De Maere of crypto market maker Wintermute advised investors against drawing broad conclusions from a single session of market weakness.

He noted that digital assets had demonstrated relative strength compared with AI-linked equities during the downturn. Continued adoption of cryptocurrencies also supports a more constructive longer-term outlook, he added.

De Maere said the near-term direction remains uncertain, but he continues to see the medium-term outlook as positive. Given the strong correlation between different asset classes, he suggested investors watch for potential buying opportunities as prices adjust.

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