CoinDesk
Bitcoin fell roughly 5.5% over 24 hours, giving back its post-election rally as a selloff in AI stocks spread to crypto-linked companies. Miners dropped 15% to 20%, while more than $1 billion in crypto derivatives positions were liquidated, mostly bullish bets, according to CoinGlass.
Why it matters
The Nasdaq sank nearly 6% and a chip-sector index plunged more than 10% in early trading. The selloff hit bitcoin miners that have increasingly shifted toward AI computing, tying their shares to expectations for data-center spending as well as crypto prices.
FalconX's Joshua Lim and GSR's Carlos Guzman said investors were weighing whether greater political opposition following the US midterms could slow data-center construction. Guzman said concerns about returns on AI infrastructure spending were already building, with disappointing chipmaker earnings adding pressure.
Market impact
Digital asset-related stocks fell more than 10%, while major cryptocurrencies held up relatively better than many shares tied to the AI trade. The liquidation wave amplified the reversal after traders had built leveraged bets on higher prices.
Wintermute's Jasper De Maere cautioned against drawing too much from one day's selloff. He said crypto's relative resilience and growing adoption supported a more optimistic medium-term view, even as correlations across assets remained high.
Frequently asked questions
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Why did crypto miners fall alongside AI stocks?
Many bitcoin miners have shifted toward AI computing, linking their shares to expectations for data-center spending as well as crypto prices.
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How large was the crypto liquidation wave?
More than $1 billion in crypto derivatives positions were liquidated over 24 hours, according to CoinGlass. Most were bullish bets.
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What concern about US midterms did analysts identify?
FalconX and GSR analysts said investors were weighing whether greater political opposition after the midterms could slow data-center construction.
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How did crypto stocks compare with major cryptocurrencies?
Digital asset-related stocks fell more than 10%, while major cryptocurrencies held up relatively better than many shares tied to the AI trade.
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Why does Wintermute retain a more optimistic medium-term view?
Jasper De Maere cited crypto's relative resilience during the AI stock selloff and growing adoption, while cautioning against drawing too much from one day's trading.
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