The Nasdaq fell over 5% and $1.1B in longs were liquidated, erasing Wednesday's rebound. Here's the cause, what's confirmed, and the levels that matter before the jobs report.
📉 Bitcoin's post-election rally lasted exactly one day. Then chip stocks collapsed, and crypto went down with them.
On Thursday, the Nasdaq Composite fell about 5.5% and the Nasdaq 100 more than 6%, its worst day since March 2020. The semiconductor index plunged about 12.3%, with AMD down 17% and Nvidia down 9%, just days after AMD's strong earnings. The S&P 500 lost roughly $2 trillion to $3 trillion in market value, depending on the count.
🔗 How it reached crypto.
$BTC fell about 5.7% to a low of $75,463, its weakest since September 16, after touching $81,105 after the midterms. About $1.1 billion to $1.25 billion in leveraged positions were liquidated, close to 90% of them longs. Ether dropped below $2,300, and Coinbase and Strategy shares fell about 9%. Fear & Greed went from 50 to 28.
🧠 What's reported, and what isn't.
Coverage points to worries that a Democratic Congress could tighten AI regulation and restrict data center construction, on top of very high-tech valuations and heavy hedge-fund positioning. That's the explanation reported, and it isn't proven. Liquidations also deepen a drop they didn't start, so no single cause explains all of it.
🪙 Not a haven, this time.
Gold rose on the day while Bitcoin fell alongside the Nasdaq. Bitcoin traded like a leveraged tech stock, not like digital gold.
📍 The levels.
The 50-week average near $75,733 is the line everyone is watching, and Bitcoin briefly broke below it. A daily close under it could open $72,000 to $73,000, while reclaiming $77,000 would ease the pressure, with $80,000 above that. Deribit options worth about $2.65 billion also expires today.
📊 The next test is today.
The October jobs report lands at 8:30 am ET (6:30 pm in Pakistan), with economists expecting about 65,000 jobs and 4.2% unemployment. December hike odds have fallen to about 67% to 69%, from over 80% earlier in the week.
✅ What this means for you
If you trade $BTC, volatility is elevated into the report. The VIX jumped about 70% in a day. Size down, avoid heavy leverage, and decide your exit before 8:30 am ET.
If you're on the sidelines, a drop like this isn't a signal to rush in. Waiting for the jobs data and a daily close above $77,000 costs you little.
If you hold long term, one chip-driven day doesn't change your plan. It does show how tightly crypto is tied to tech right now.
🟢 Bullish scenario
Jobs data soothes rate fears, chip stocks stabilize, and $BTC reclaims $77,000 and heads back toward $80,000.
🔴 Risk scenario
Tech selling continues, $BTC closes below $75,733, and the move extends toward $72,000 to $73,000.
👀 Three things to watch
1️⃣ The 50-week average near $75,733 and the $77,000 reclaim
2️⃣ Today's jobs report and December hike odds
3️⃣ Chip stocks: do they bounce or keep falling?
💡 The key takeaway
Crypto didn't fall on its own news. It fell with the stocks it has been trading besides, and then forced selling made it worse.
The real question isn't what caused Thursday. It's whether tech steadies before Bitcoin loses its last support.
That is the part worth watching.
This post is for informational and educational purposes only and is not financial advice. Crypto markets are volatile. Always conduct your own research before making financial decisions.
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