Historical report: Decrypt published the original on November 6, 2026, at 00:29 UTC+8, covering trading on Thursday, November 5. Prices and market expectations below reflect that reporting window.
Bitcoin’s rebound above $80,000 lasted barely a session. According to Decrypt, a selloff in technology stocks spread to cryptocurrencies on Thursday, pushing Bitcoin to about $76,500—down nearly 5%—and triggering roughly $428 million in crypto long liquidations in one hour.
Ethereum fell more than 5%, other major tokens posted comparable losses, and roughly 90% of the top 100 cryptocurrencies traded lower. The reversal brought Bitcoin back near its levels before Wednesday’s post-election jump.
Election relief gave way to AI concerns
The initial market response to Democrats’ sweep of Congress shifted quickly. After early concern about tougher oversight of industries favored by President Donald Trump, stocks rallied Wednesday as traders bet that divided government would limit major policy changes. Falling oil prices also offered some relief on inflation. Bitwise Europe analyst André Dragosch told Decrypt that the Democratic sweep was “largely priced in.”
By Thursday, investors were focusing on potential constraints on the data-center boom, including voter opposition to rising electricity costs and new facilities.
Voters in at least 29 U.S. jurisdictions backed restrictions on data-center development, although not all the measures were binding. Reuters reported that UBS estimated potential pauses could threaten 30% of planned U.S. data-center capacity additions in 2028.
“We suspect there is going to be some scrutiny on this aggressive AI buildout,” Swissquote senior analyst Ipek Ozkardeskaya told Reuters.
The selling hit AI-linked stocks hard:
- The Philadelphia Semiconductor Index dropped about 8%.
- CoreWeave and Nebius suffered double-digit declines.
- Tesla fell roughly 9.5%, extending losses after Elon Musk spent heavily supporting Republican candidates.
The S&P 500 was down about 2.6% in late-morning trading, while the Nasdaq fell nearly 4%, approaching a correction—a 10% decline from its peak. Decrypt also described an almost 4% S&P 500 drop within minutes, its biggest bearish intraday move in months.
“The market’s moving from the promise of AI to the price of AI,” Incline Investment Management chief executive Ted Parkhill told Reuters.
Liquidations magnified Bitcoin’s reversal
Wednesday’s Bitcoin rally had its own mechanical boost: traders closing losing bets against the cryptocurrency. CoinGlass data cited by Decrypt showed about $378 million in short positions liquidated in one hour as Bitcoin climbed above $80,000.
Thursday reversed that process. As prices fell, exchanges automatically closed underfunded long positions, adding selling pressure. The liquidation figures help explain the speed of both moves; they do not, by themselves, establish lasting demand or a change in project quality.
Crypto entered the election period under pressure. Decrypt reported that the market had lost roughly $300 billion over the preceding month, amid concerns about AI spending, rising borrowing costs and the fallout from a multibillion-dollar Binance hack the previous week.
Policy and chart signals remained unresolved
Democratic control also complicated efforts to revive the stalled Clarity Act, a proposed federal framework for digital assets. The new Congress was not due to take office until January.
At the time of reporting, traders expected another Federal Reserve rate increase in December as inflation persisted. Friday’s October jobs report could change those expectations; higher rates generally weigh on demand for speculative investments.
Bitcoin’s hourly chart showed selling through $79,000 toward $76,100. Decrypt identified $75,000 as the next level to watch and a recovery above $80,000 as a possible source of relief—not a guaranteed outcome.
The daily candle also threatened a bearish engulfing pattern that could erase Wednesday’s breakout. That signal remained unconfirmed because Thursday’s candle had not closed.