Bitcoin falls below $76,000 as AI sell-off hits stocks and crypto

Bitcoin gives back its post-election rally

Bitcoin fell just below $76,000 after a sharp sell-off in stocks linked to artificial intelligence, or AI. The drop reversed a rally that followed Tuesday's U.S. midterm elections.

Major cryptocurrencies fell, but held up better than many AI-linked stocks. Over $1 billion in leveraged crypto bets, where traders borrow money to bet on higher prices, were forced to close.

Numbers from a difficult day for markets

• Bitcoin was down about 5.2% over 24 hours, while Ether was down 7.5%. XRP and Solana were each down 5.5%.
• The Nasdaq fell 5.5%, the S&P 500 fell 4.3%, and the Dow Jones Industrial Average fell 3.4%.
• The Nasdaq 100 fell 6.4%, its worst session since the March 2020 Covid panic, and the Philadelphia Semiconductor Index fell 12%, also its worst day since March 2020.
• The U.S. stock market had its worst session since President Trump's April 2025 tariff announcements.
• Gold rose 0.6% to $4,094 per ounce, after reaching higher levels earlier.

Analysts link the fall to fears about data centers

Analysts at FalconX and GSR said investors are worried that greater political opposition after the midterms could slow the building of data centers used for AI. Democrats won control of both chambers of Congress in the elections.

Joshua Lim of FalconX said fresh selling returned as the possible effects of a slower data center buildout came into focus. He said the earlier rally was driven by short-covering, which means traders closing bets that prices would fall.

Carlos Guzman of GSR said investors were already questioning returns on money spent on AI infrastructure. He said the election results added to those concerns, and disappointing earnings from chipmakers also added pressure.

Crypto miners fell 15% to 20%, and stocks linked to digital assets fell more than 10%, according to the report.

More than $1 billion in bets forced to close

CoinGlass reported more than $1 billion in crypto derivatives positions were liquidated over 24 hours. Derivatives are contracts based on the price of an asset, and liquidation means a position is forcibly closed when a trader loses enough money.

Most of the liquidations came from bullish bets, or bets that prices would rise. It was the largest wipeout since Oct. 28-29, when Bitcoin fell from nearly $82,000 to $76,000.

Guzman said a pullback in risk appetite was amplified by leverage. Jasper De Maere of Wintermute cautioned against reading too much into one day, saying crypto had held up relatively well and broader adoption continues to strengthen the longer-term outlook. He described the medium-term outlook as glass half full.

CoinDesk report behind this story

• CoinDesk