Bitcoin drops below $76,000 as stocks sell off and crypto liquidations rise
Bitcoin falls to a seven-week low during a stock sell-off
Bitcoin fell below $76,000 on Thursday, dropping more than 6% to $75,463 on Bitstamp. Data from TradingView showed it was the lowest level since Sept. 16.
The fall came as US stocks reversed gains made after the midterm elections. The S&P 500 fell 2.7%, and the tech-heavy Nasdaq Composite lost more than 4%, reaching its lowest level since July 29.
The main numbers behind Thursday's move
- Bitcoin: $75,463, down more than 6% and its lowest since Sept. 16.
- Nasdaq Composite: down 4.2% in key figures reported in the source.
- S&P 500: down 2.7%.
- WTI crude oil: back above $90 per barrel.
- Brent crude: up 2.5% to approach $97.
- Crypto liquidations: nearly $500 million in the first hour of US trading, with the 24-hour total nearing $850 million at the time of writing, according to CoinGlass.
Liquidations happen when trading positions are closed after traders lose money, which can add pressure during sharp price moves.
Stocks rotate out of tech after election gains
Stocks had risen after Democrats swept the US House of Representatives and the Senate, the source said. On Thursday, traders sold tech shares, and equities fell sharply.
Oil rose as reports mentioned fresh strikes on tankers in the Middle East and uncertainty about what steps Democrats may take on the US-Iran war.
What market commentators said about the sell-off
Jordan Watson, a portfolio manager at Tandem Investment Advisors, told CNBC that investors may face more volatility as they assess the election results and possible policy effects. He also said the gains after the midterms should not be treated as an all-clear signal.
Economist Mohamed El-Erian questioned whether the political shift would have a long-term negative impact on tech. In a blog post, he asked if the change in Congress would really slow tech down, and whether the rest of the market could do well without tech earnings and spending.
El-Erian described the weakness in tech shares on Thursday as not surprising. The source also noted earlier reporting on concern that Democrat policies could be less favorable to the artificial intelligence sector and could affect spending plans.
A long-term Bitcoin level comes under pressure
Bitcoin briefly fell below its 50-week simple moving average, which was at $75,733. A simple moving average is the average price over a set period, so the 50-week level shows the average price over 50 weeks.
The source said Bitcoin was close to the bottom of its one-month trading range and that the moving average level was at risk as support. Support means a price area where buying interest may appear, but the source only said the level's role as support was under pressure.
Crypto trader Rekt Capital said in his latest analysis that Bitcoin was repeating behaviour from May. At that time, he said, rangebound moves around $80,000 were followed by a breakdown to new macro lows of $57,000 in late June. This is the trader's analysis, not a confirmed outcome.
Where this report is based
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.
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