Key facts
- Bitcoin fell to about $76,500, down nearly 5%, after jumping above $80,000 on Wednesday.
- Roughly $428 million in crypto longs were liquidated in one hour, the report said.
- About $378 million in short positions were liquidated in one hour on Wednesday, per CoinGlass data.
- Ethereum shed more than 5% and roughly 90% of the top 100 tokens were lower.
- The Philadelphia Semiconductor Index dropped about 8% and the Nasdaq sank nearly 4%.
- UBS estimates data-center pauses could threaten 30% of planned 2028 US capacity additions, per Reuters.
Bitcoin erased Wednesday's post-election rebound on Thursday, November 5, as a technology stock selloff spread to cryptocurrencies and triggered forced liquidations. The token fell to about $76,500, down nearly 5% and back near levels seen before Wednesday's jump above $80,000, according to the report.
Ethereum shed more than 5%, and roughly 90% of the top 100 cryptocurrencies were in the red during the selloff. About $428 million in crypto longs were liquidated in one hour, the report said. Exchanges automatically close underfunded long positions as prices fall, generating more selling.
Wednesday's rally had looked strong, but much of its buying pressure came from traders closing losing bets against Bitcoin. About $378 million in short positions were liquidated in one hour as Bitcoin pushed above $80,000, according to CoinGlass data.
US stocks also fell. The S&P 500 lost about 2.6% in late-morning trading and the Nasdaq sank nearly 4%, approaching a correction, or a 10% drop from its peak. The Philadelphia Semiconductor Index dropped about 8%, while CoreWeave and Nebius fell by double digits. Tesla fell roughly 9.5%.
Investors weighed what Democratic control of Congress might mean for the data-center boom, particularly in states where voters oppose rising electricity costs and new facilities. Voters in at least 29 US jurisdictions backed restrictions on data-center development, though not every measure is binding. UBS estimates potential pauses could threaten 30% of planned US data-center capacity additions in 2028, per Reuters.
"We suspect there is going to be some scrutiny on this aggressive AI buildout," Swissquote senior analyst Ipek Ozkardeskaya told Reuters. Ted Parkhill, chief executive of Incline Investment Management, told Reuters: "The market's moving from the promise of AI to the price of AI."
Democratic control also complicates efforts to revive the stalled Clarity Act, a proposed federal rulebook for digital assets, the report said. The new Congress will not take office until January.
The crypto market had already lost roughly $300 billion in value over the previous month, amid concerns about AI spending, rising borrowing costs and the fallout from last week's multibillion-dollar Binance hack, the report said. Traders also expect another Federal Reserve rate increase in December, and Friday's October jobs report could alter those bets.