Bitcoin’s rally after the elections proved short-lived, with the leading cryptocurrency slipping from a high of $80,000 on Wednesday to $75,700 on Thursday. This decline of 6% coincided with a sharp drop in key US technology stocks, as market volatility spread from Wall Street into the cryptocurrency sector. Meanwhile, Ether also suffered significant losses, tumbling more than 7% to $2,247.
Heavy liquidations across crypto markets
As the selloff intensified, traders with leveraged positions found themselves forced out of the market. CoinGlass, a platform providing analytics for digital asset traders, recorded $1.1 billion in liquidations across the crypto market within 24 hours. Nearly 211,000 positions were impacted, with losses peaking at $879.92 million during a single four-hour window. Of that amount, $818.90 million involved long positions, indicating heavy losses for those betting on price increases.
These elevated liquidations reflect the rapid exit of leveraged traders rather than withdrawals from spot Bitcoin exchange traded funds (ETFs). ETF flows, which reflect the movement of funds into and out of regulated investment products, operate independently from derivative market liquidations.
Liquidation data measures the forced closure of leveraged trades, separate from movements in ETF fund flows, which show investor sentiment for spot Bitcoin exposure.
ETF flows diverge during the downturn
Even before Thursday’s sharp decline, spot Bitcoin ETFs were experiencing notable outflows. FarSide, a financial data provider, reported net withdrawals of $643.2 million on October 30, $398.6 million on November 2, and $115.6 million on November 3. Over three days, outflows totaled $1.16 billion.
On November 4, the trend briefly shifted; spot Bitcoin ETFs saw a net inflow of $74.6 million. However, this overall inflow masked significant disparities between funds. Fidelity’s FBTC attracted $236.7 million in new assets, while BlackRock’s IBIT faced net redemptions totaling $201.2 million. Flow data for November 5 remains incomplete as some funds have yet to report. Earlier in October, Cryptopolitan highlighted a single-day outflow of $487 million, underscoring ongoing volatility in ETF investor sentiment.
| Date | Total Net ETF Flows | FBTC (Fidelity) | IBIT (BlackRock) |
|---|---|---|---|
| Oct 30 | –$643.2 million | N/A | N/A |
| 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 |
These differing ETF movements suggest that the brief inflow may not represent sustained renewed demand for spot Bitcoin investment products.
AI stock rout shakes technology and crypto
The pressure on Bitcoin emerged alongside a rapid selloff in artificial intelligence stocks. On Thursday, the Nasdaq index closed down 5.5% at 24,315.00, placing it 11.9% below its recent October peak. The S&P 500 lost 4.4%, while Nvidia shares dropped 9.3%.
Analysts pointed to mounting doubts regarding the pace of AI investment and its ability to generate near-term returns. Companies face high borrowing costs and possible new regulatory restrictions on data centers in the post-election environment. Ipek Ozkardeskaya, an analyst at Swissquote, remarked to Reuters,
“Coming into this earnings season, there were worries that AI spending was too much.”
Michael Cembalest, an executive at J.P. Morgan, reported an 8% decline in hedge funds’ equity market exposure and approximately $4 trillion in outstanding AI-related off-balance-sheet commitments, which are not immediately due liabilities. He also warned that 37.5 gigawatts of planned data-center capacity for 2028 could face construction delays, with another 15 gigawatts subject to further conditions. He clarified that these would be pauses rather than outright cancellations.
Mini dictionary: Spot Bitcoin ETFs are regulated investment vehicles that allow investors to gain direct exposure to Bitcoin’s price movements without needing to hold the cryptocurrency directly. They trade on traditional exchanges and are subject to regulatory requirements regarding transparency and asset custody.
Correlation between crypto and tech markets
The synchronized selloff underscored the increasing correlation between Bitcoin and US tech stocks. Research by Foundry Labs measured a 0.41 correlation coefficient between Bitcoin and QQQ, the Nasdaq-100 ETF, over 63 days. Foundry Labs also observed that publicly traded Bitcoin miners move in tandem with AI infrastructure stocks.
S&P Global highlighted that Bitcoin often follows stock market sentiment when investors pull back from risky assets. A 2025 study also identified increased volatility affecting crypto, stocks, and oil during election periods. Despite these parallels, analysts have not drawn a direct line of causation between the AI stock selloff and Bitcoin’s sharp drop.
Analyst views on Bitcoin’s next price levels
As Bitcoin attempts to regain ground, liquidity provider Wintermute described the recent rebound as a fleeting phase of optimism. The firm identified $73,000 and $68,000 as the next major support levels to monitor, adding that Bitcoin must reclaim $80,000 before a return to a more constructive outlook.
Political developments could add another layer of unpredictability. Paul Howard from Wincent cautioned that recent gains by Democrats in Congress could make the passage of the Clarity Act, a legislative proposal aiming to define cryptocurrency regulation, more complex. Forthcoming ETF reports are expected to clarify whether the November 4 inflow marks a real recovery in demand or only a brief pause amidst broader market outflows.
