Bitcoin price plunged more than 6% on Thursday, November 5, falling below $76,000 as a sharp Wall Street selloff erased gains recorded following the US midterm elections.
The world’s largest cryptocurrency dropped to approximately $75,463, its lowest level since September 16, as investors reduced exposure to riskier assets.
Meanwhile, the Nasdaq Composite tumbled more than 4%, while widespread cryptocurrency liquidations intensified selling pressure across digital asset markets.
The decline also pushed Bitcoin briefly below its closely watched 50-week moving average, raising concerns about whether the cryptocurrency can maintain a critical long-term support level.
Bitcoin Price Crashes Below $76,000 to Seven-Week Low
Bitcoin experienced a sudden wave of selling as US stock markets opened on Thursday.
According to TradingView data, BTC/USD declined more than 6%, reaching an intraday low of $75,463 on Bitstamp.
The drop represented Bitcoin’s weakest price level in approximately seven weeks and reversed much of the recovery recorded after the US congressional elections.
Earlier, Bitcoin had climbed above $80,000 as investors welcomed reduced uncertainty following the Democratic Party’s victory in both chambers of Congress.
However, the optimism proved short-lived as selling pressure returned to technology stocks and cryptocurrencies.
Bitcoin’s sudden reversal highlighted the close relationship between digital assets and broader investor sentiment.
When investors become concerned about economic growth, technology valuations, or political developments, speculative assets can experience particularly sharp price movements.
Nasdaq Plunges Over 4% as Wall Street Rally Reverses
The Bitcoin price crash coincided with a substantial decline in major US stock indices.
The technology-heavy Nasdaq Composite fell approximately 4.2% during the reported trading period, reaching its lowest level since July 29.
Meanwhile, the S&P 500 declined around 2.7% as investors sold technology shares and reduced exposure to growth-oriented investments.
The selloff followed a strong relief rally on Wednesday, when markets initially reacted positively to the US midterm election results.
However, investors quickly reconsidered the potential implications of Democratic control of Congress for artificial intelligence companies and major technology businesses.
Concerns about tighter AI regulations, data center development restrictions, and corporate investment spending contributed to the reversal.
These developments placed additional pressure on Bitcoin, which has increasingly reacted to shifts in sentiment toward technology stocks.
US Midterm Elections Raise Concerns About AI Investments
The Democratic victory in the US midterm elections has introduced new questions about the future of artificial intelligence infrastructure investment.
Some market participants believe the new congressional leadership could introduce stricter oversight of AI companies and data center development.
Potential restrictions on electricity consumption, construction permits, and environmental requirements could complicate expansion plans across the technology industry.
These concerns have increased uncertainty surrounding the enormous capital expenditures planned by companies developing advanced AI systems.
However, economists remain divided over whether political changes will significantly alter the industry’s long-term growth prospects.
Mohamed El-Erian questioned whether the shift in congressional power would genuinely slow technology development.
He also raised concerns about whether the broader US economy could maintain its momentum without the substantial earnings and investment contributions of major technology companies.
El-Erian suggested that the weakness in technology stocks was not particularly surprising given the changing political environment.
Oil Prices Rebound as Iran War Uncertainty Persists
Energy markets also experienced renewed volatility as investors reassessed the geopolitical outlook following the elections.
West Texas Intermediate crude oil climbed back above $90 per barrel, while Brent crude gained approximately 2.5% to approach $97.
The recovery followed a substantial decline in oil prices during the previous session.
Fresh reports of attacks involving tankers in the Middle East contributed to renewed concerns about regional energy supplies.
Meanwhile, uncertainty remains over how the Democratic-controlled Congress might influence Washington’s approach to the ongoing conflict with Iran.
Investors are assessing whether increased political pressure could encourage diplomatic negotiations or lead to additional geopolitical instability.
Jordan Watson, portfolio manager at Tandem Investment Advisors, warned that financial markets could face further volatility as investors evaluate the election results and their policy implications.
Watson also cautioned against interpreting the initial post-election stock market rally as evidence that financial risks had disappeared.
Nearly $850 Million in Crypto Liquidations Shake Markets
The sharp Bitcoin decline triggered substantial liquidations across cryptocurrency derivatives markets.
According to CoinGlass data, nearly $500 million worth of leveraged crypto positions were liquidated during the first hour of the US trading session.
Total liquidations over the preceding 24 hours approached $850 million at the time of reporting.
The figures illustrate how quickly leverage can amplify market volatility.
When cryptocurrency prices fall sharply, traders holding leveraged long positions may be forced to close their positions as their collateral becomes insufficient.
These liquidations can generate additional selling pressure, potentially accelerating the original decline.
Large liquidation events can also affect other digital assets as traders reduce exposure across multiple positions.
For investors, the latest wave of forced selling highlights the risks associated with highly leveraged cryptocurrency trading during periods of market uncertainty.
Bitcoin’s 50-Week Moving Average Faces Critical Test
Beyond the immediate selloff, technical analysts are closely monitoring Bitcoin’s 50-week simple moving average (SMA).
During Thursday’s decline, BTC/USD briefly moved below this indicator, which stood near $75,733.
The 50-week moving average is widely followed because it helps identify Bitcoin’s longer-term market trend.
When prices remain above the indicator, traders may interpret it as evidence of continued underlying market strength.
However, a sustained move below the moving average can suggest weakening momentum and raise concerns about a deeper correction.
Bitcoin’s brief decline beneath $75,733 therefore placed additional attention on whether buyers could defend the surrounding support zone.
Nevertheless, a temporary move below a technical indicator does not automatically confirm a long-term bearish trend.
Traders generally look for sustained price action and additional confirmation before drawing conclusions about a major trend reversal.
Bitcoin’s $76,000 Support Level Becomes Key Focus
Following the sharp decline, Bitcoin approached the lower boundary of its recent one-month trading range.
The $76,000 area has become an important short-term price level as investors assess whether the latest selloff represents a temporary correction or the beginning of a more prolonged decline.
A recovery above this threshold could help stabilize sentiment and encourage buyers to return.
Conversely, sustained trading below the level could increase pressure on Bitcoin’s longer-term technical support.
Crypto analyst Rekt Capital highlighted similarities between the current price structure and Bitcoin’s previous trading behavior earlier in 2026.
During May, Bitcoin experienced a period of sideways movement around $80,000 before subsequently breaking lower.
That earlier consolidation was followed by a deeper decline, with Bitcoin reaching approximately $57,000 in late June.
The comparison has raised concerns that the cryptocurrency could experience another extended correction if important support levels fail.
However, historical chart similarities do not guarantee that Bitcoin will repeat its previous performance.
Is a Bigger Bitcoin Price Crash Coming?
Bitcoin’s latest decline highlights the growing influence of macroeconomic conditions and traditional financial markets on cryptocurrency prices.
The sharp reversal in US technology stocks has weakened investor confidence, while political uncertainty continues affecting expectations for economic growth and industry regulation.
At the same time, substantial liquidations have increased short-term selling pressure across the cryptocurrency market.
From a technical perspective, Bitcoin’s ability to recover above $76,000 and defend its 50-week moving average could become important for the immediate market outlook.
A sustained recovery might suggest that buyers are absorbing the latest selling pressure.
However, further weakness in the Nasdaq or additional forced liquidations could make stabilization more difficult.
Investors will also monitor upcoming US economic data, Federal Reserve interest rate expectations, and developments surrounding the Iran conflict.
For now, Bitcoin’s drop to a seven-week low demonstrates how quickly market sentiment can reverse, even after a strong relief rally.
Whether the decline develops into a deeper correction will depend on the cryptocurrency’s ability to regain important technical levels and the broader recovery of investor risk appetite.
