What happened to Bitcoin’s price?
Bitcoin’s election rally lasted just one day. After the U.S. midterm elections concluded on Tuesday, the cryptocurrency briefly rose above $80,800, but then fell to around $75,500 on Thursday, November 5.
The reversal came as Wall Street suffered its worst tech-stock sell-off in months, underscoring just how fragile Bitcoin’s recovery had become.
Why did Bitcoin reverse course so quickly?
Wednesday’s rally followed a turbulent week in which Binance was hacked. Traders initially welcomed the end of election uncertainty, but the rebound was largely driven by investors closing their short positions on Bitcoin.
By Thursday, investors were reassessing the implications of Democrats winning control of both chambers of Congress.
Concerns that construction of AI data centers could be constrained hit semiconductor stocks, which were already under scrutiny over massive AI spending.
The Nasdaq fell 5.5%, Nvidia plunged 9.3%, and AMD sank even further, down 17.3%.
Bitcoin also retreated along with other risk assets. Leverage then intensified the decline.
According to CoinGlass, $1.08 billion in cryptocurrency positions were liquidated over the past 24 hours, including about $954 million in bullish bets.
Bitcoin’s election rally lasted just one day. After the U.S. midterm elections concluded on Tuesday, the cryptocurrency briefly rose above $80,800, but then fell to around $75,500 on Thursday, November 5.
The reversal came as Wall Street suffered its worst tech-stock sell-off in months, underscoring just how fragile Bitcoin’s recovery had become.
Why did Bitcoin reverse course so quickly?
Wednesday’s rally followed a turbulent week in which Binance was hacked. Traders initially welcomed the end of election uncertainty, but the rebound was largely driven by investors closing their short positions on Bitcoin.
By Thursday, investors were reassessing the implications of Democrats winning control of both chambers of Congress.
Concerns that construction of AI data centers could be constrained hit semiconductor stocks, which were already under scrutiny over massive AI spending.
The Nasdaq fell 5.5%, Nvidia plunged 9.3%, and AMD sank even further, down 17.3%.
Bitcoin also retreated along with other risk assets. Leverage then intensified the decline.
According to CoinGlass, $1.08 billion in cryptocurrency positions were liquidated over the past 24 hours, including about $954 million in bullish bets.
