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Bitcoin fell 6% to $75,700 on Thursday, touching an intraday low of $75,568 as a selloff in US technology and AI stocks spilled into crypto markets. Ether dropped more than 7% to $2,247, while nearly $1.1 billion in leveraged crypto positions were liquidated over 24 hours, according to CoinGlass. The reversal erased gains made after the US midterm elections.
Why it matters
Wednesday's rebound had taken Bitcoin back above $80,000, helped by election optimism and signs that the Binance hack had not caused broader market disruption. Wintermute said those factors proved short-lived against persistent macroeconomic pressures.
The election also leaves the outlook for crypto legislation uncertain. Wincent senior director Paul Howard said Democrats' strengthened position in Congress could make bipartisan cooperation necessary for progress, with the Clarity Act's prospects unclear.
Market impact
As of 2 p.m. ET, the Dow and S&P 500 were each down about 3%, while the Nasdaq had fallen 4.7%. The VIX surged approximately 60%. Bitdeer and Keel Infrastructure each fell about 20%, and Strategy and Coinbase were each down about 10%.
CoinGlass recorded $879.92 million in liquidations over four hours, including $818.90 million in longs and $61.02 million in shorts. Nearly 211,000 traders were affected over 24 hours, although publicly available figures may understate total liquidations.
Wintermute identified $73,000 and $68,000 as the next Bitcoin levels to watch if weakness persists. The firm said it would need to see Bitcoin convincingly reclaim and hold $80,000 before turning more positive.
Frequently asked questions
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How much was liquidated in crypto derivatives markets?
CoinGlass recorded nearly $1.1 billion in liquidations over 24 hours, affecting nearly 211,000 traders. Publicly available figures may understate the total.
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How much of the four-hour liquidation total came from long positions?
Long positions accounted for $818.90 million of the $879.92 million liquidated over four hours. Shorts accounted for $61.02 million.
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What drove Bitcoin's rebound before the selloff?
Wintermute cited election optimism and relief that the Binance hack had not caused broader market disruption. The firm said those factors proved short-lived against persistent macroeconomic pressures.
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Which Bitcoin price levels is Wintermute watching?
Wintermute identified $73,000 and $68,000 as levels to watch if weakness continues. It said Bitcoin would need to convincingly reclaim and hold $80,000 before the firm turns more positive.
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How could the election affect US crypto legislation?
Wincent senior director Paul Howard said Democrats' strengthened position in Congress could make bipartisan cooperation necessary for progress. He described the Clarity Act's prospects as uncertain.
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