Bitcoin came under renewed pressure on Thursday as significant losses in US equity markets threatened the cryptocurrency’s recent post-election rebound above $80,000.
US Stock Selloff Raises Speculative Risks
On November 5, the S&P 500 slipped by about 1.7% during morning trading hours, while the Nasdaq Composite fell 3.1%. These declines followed a brief rally the previous day, when the S&P 500 rose 1.6% after the Democratic Party secured control of Congress in the US midterm elections.
Market analysts noted that semiconductor and artificial intelligence infrastructure firms faced renewed volatility, with investors reassessing the prospects for data center construction and technology spending. Qualcomm shares plunged more than 10% after releasing lackluster earnings tied to its smartphone segment, and Nvidia, along with several other major tech stocks, also weakened.
The intensifying correction in the Nasdaq has fueled concerns about the viability of costly AI expansions, particularly regarding access to financing and the risk of construction delays. These worries have extended to Bitcoin mining companies, many of which are investing in artificial intelligence infrastructure as part of their growth strategies.
Historically, cryptocurrency markets tend to face selling pressure in periods where investors reduce exposure to speculative assets alongside wider equity declines.
Nevertheless, analysts cautioned that concurrent drops in both Bitcoin and equity indices do not necessarily indicate a direct causal relationship between the two markets.
Mini dictionary: Nasdaq Composite, a stock market index that includes over 2,500 companies, mostly in the technology sector, and is often seen as a gauge of tech industry performance and risk appetite.
Bitcoin ETF Flows Reveal Divided Sentiment
On the institutional side, spot Bitcoin exchange-traded funds (ETFs) in the US recorded a net inflow of $74.6 million on November 4, data from Farside Investors showed. This marked a reversal after three straight days of outflows, including $398.6 million withdrawn on November 2 and $115.6 million on November 3.
The fund-level trends, however, reflected ongoing divergence. Fidelity’s FBTC, an ETF tied to Bitcoin, attracted $236.7 million on the same day. In contrast, BlackRock’s IBIT, managed by one of the world’s largest investment firms, registered $201.2 million in outflows.
Such differences indicate that while some institutional investors are increasing their participation, others continue to reduce exposure, highlighting uncertainty in the broader market.
Activity in spot Bitcoin ETFs saw significant flips, with inflows returning to the sector even as BlackRock’s IBIT recorded over $200 million in outflows, suggesting complex sentiment among major institutional participants.
Earlier in the week, a $643 million aggregate ETF withdrawal highlighted the speed at which institutional appetite for Bitcoin can shift during high-stress periods in financial markets.
| Date | Total Net Inflow/Outflow | Fidelity FBTC | BlackRock IBIT |
|---|---|---|---|
| Nov. 2 | -$398.6 million | N/A | N/A |
| Nov. 3 | -$115.6 million | N/A | N/A |
| Nov. 4 | +$74.6 million | +$236.7 million | -$201.2 million |
Technical Levels in Focus as Volatility Rises
Bitcoin’s immediate outlook depends on whether buyers can prevent another decisive drop below $80,000 after Wednesday’s bounce. The $78,000 level currently serves as a near-term reference point, with the $76,000 to $77,000 range identified as a testing ground during the latest retreat.
If sellers regain momentum, $75,000 could serve as the next psychological threshold. Below that, the 200-day moving average—currently around $73,188 as referenced in Reuters technical analysis—will be an important longer-term support.
On the other hand, if Bitcoin rallies again above $80,000, targets of $81,319 and then resistance near $82,000 become the next focus. A clear breakout could revive ambitions for a return to $85,000.
Market observers are watching the $78,000 to $77,000 region and, if selling accelerates, the $75,000 and $73,188 levels for potential support, while any sustained push above $80,000 could set the stage for a move towards $85,000.
