AI-driven sell-off in U.S. stocks; crypto liquidations exceed $1.1 billion in 24 hours
Event: On November 5, U.S. tech stocks were hit by concentrated selling. The Nasdaq fell 5.52%, the Philadelphia Semiconductor Index posted its biggest single-day drop since March 2020, and Nvidia fell more than 9%. Risk sentiment spilled across markets into crypto. CoinGlass data showed about $880 million in liquidations over the past four hours, and approximately $1.1 billion to $1.25 billion over 24 hours, overwhelmingly among long positions.
Why it matters: This is a classic case of macro risk spillover, not a problem with crypto's own fundamentals. Institutions treat Bitcoin as a high-beta tech asset. When U.S. stocks fall, market makers and macro funds cut crypto leverage first.
Affected coins: The broader market is under pressure, with XRP, ETH, and SOL among the biggest decliners.
Notable moves: BTC briefly plunged from above 80,000 to 75,200; XRP led major cryptocurrencies lower, falling 9%.
Resistance and support: BTC resistance above: 78,000 (a broken support level that has turned into resistance), 80,300 (near the previous high); support below: 75,200 (today's low and also a roughly three-month low), 73,000. ETH resistance: 2,300, 2,418; support: 2,206, 2,150.
Outlook: In the short term, watch whether U.S. tech stocks can find a floor. The Nasdaq has already fallen below its 200-day moving average, and volatility is likely to increase. If Friday's nonfarm payrolls come in weak and expectations of a December rate hike rise (currently around 67%), risk assets will remain under pressure. $BTC has strong support around 75,000, but a rebound will require U.S. stocks to stabilize.
About the coins: Bitcoin is the largest crypto asset by market capitalization, and institutions gain exposure through spot ETFs; Ethereum is a smart contract platform, and $ETH is its gas and staking asset; $XRP is a token used by Ripple for cross-border settlements.
Event: On November 5, U.S. tech stocks were hit by concentrated selling. The Nasdaq fell 5.52%, the Philadelphia Semiconductor Index posted its biggest single-day drop since March 2020, and Nvidia fell more than 9%. Risk sentiment spilled across markets into crypto. CoinGlass data showed about $880 million in liquidations over the past four hours, and approximately $1.1 billion to $1.25 billion over 24 hours, overwhelmingly among long positions.
Why it matters: This is a classic case of macro risk spillover, not a problem with crypto's own fundamentals. Institutions treat Bitcoin as a high-beta tech asset. When U.S. stocks fall, market makers and macro funds cut crypto leverage first.
Affected coins: The broader market is under pressure, with XRP, ETH, and SOL among the biggest decliners.
Notable moves: BTC briefly plunged from above 80,000 to 75,200; XRP led major cryptocurrencies lower, falling 9%.
Resistance and support: BTC resistance above: 78,000 (a broken support level that has turned into resistance), 80,300 (near the previous high); support below: 75,200 (today's low and also a roughly three-month low), 73,000. ETH resistance: 2,300, 2,418; support: 2,206, 2,150.
Outlook: In the short term, watch whether U.S. tech stocks can find a floor. The Nasdaq has already fallen below its 200-day moving average, and volatility is likely to increase. If Friday's nonfarm payrolls come in weak and expectations of a December rate hike rise (currently around 67%), risk assets will remain under pressure. $BTC has strong support around 75,000, but a rebound will require U.S. stocks to stabilize.
About the coins: Bitcoin is the largest crypto asset by market capitalization, and institutions gain exposure through spot ETFs; Ethereum is a smart contract platform, and $ETH is its gas and staking asset; $XRP is a token used by Ripple for cross-border settlements.