Bitcoin dropped below $76,000 on Thursday as selling in artificial intelligence-linked stocks spread across markets and into cryptocurrencies. The Nasdaq fell nearly 6%, heading toward the index's worst session since Trump introduced tariffs in April 2025. A chip-sector index dropped more than 10% during early trading. Crypto miners declined 15%-20%; many miners have been redirecting business toward AI computing.
Coinbase, the largest crypto exchange in the United States, stablecoin issuer Circle and digital asset custody company BitGo each fell between 10% and 15%. Strategy, a bitcoin treasury company, declined 9.6%.
Investors were assessing Tuesday's U.S. midterm elections, which gave Democrats control of both congressional chambers. The concern is that stronger political opposition could delay construction of the data centers supporting AI growth. The AI business has become increasingly important to bitcoin miners.
Joshua Lim, global co-head of markets at institutional crypto brokerage FalconX, said renewed selling reflected increasing attention to the implications of slower data-center construction. Lim said short-covering largely drove yesterday's post-election rally after a widely anticipated result.
Carlos Guzman, vice president of research at digital asset trading firm GSR, said investors had already been questioning returns on substantial AI infrastructure investment. Guzman said the midterms appeared to have triggered the selloff because investors feared stronger opposition to data-center expansion could slow AI development. Guzman said the election outcome compounded existing concerns about returns on AI spending. Guzman also cited disappointing chipmaker earnings as an additional source of pressure.
However, major cryptocurrencies suffered smaller declines than many AI-linked stocks. Bitcoin lost roughly 5.5% over the past 24 hours and returned close to levels preceding Wednesday's rally. Ether, Solana, XRP and Hyperliquid recorded somewhat larger declines of 6%-7%. The reversal brought forced selling in derivatives markets after traders accumulated leveraged positions anticipating higher prices.
CoinGlass recorded more than $1 billion in crypto derivatives liquidations over the past 24 hours, mainly from bullish positions. The liquidation total was the largest since at least October 28-29, when bitcoin dropped from nearly $82,000 to $76,000. Guzman said yesterday's rally appeared to reflect optimism about the geopolitical situation following the midterm results. Guzman said risk appetite appeared to have reversed today, with leverage magnifying the decline.
Wintermute's Jasper De Maere warned against drawing broad conclusions from one day's decline. De Maere said crypto had shown relative resilience during the AI stock turmoil. De Maere said expanding adoption continued to improve crypto's longer-term prospects. De Maere remained more optimistic about the medium term while waiting to assess the short-term outcome. De Maere said high correlations across assets warranted watching for investment bargains that could emerge over time.
Bitcoin Falls Below $76K Amid AI Stock Sell-Off and Midterm Election Impact
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Summary
Bitcoin news broke Thursday as Bitcoin fell below $76,000 amid a broad sell-off in AI-linked stocks and crypto. The Nasdaq dropped nearly 6%, with crypto miners losing 15%-20%. Coinbase, Circle, and BitGo each fell 10%-15%, while Strategy dropped 9.6%. The fear and greed index turned sharply negative as traders reacted to slower data-center construction concerns post-elections. Bitcoin lost 5.5% in 24 hours, with over $1 billion in crypto derivatives liquidated.
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