Bitcoin fell below the $76,000 mark on Thursday as a technology-led selloff on Wall Street drove investors out of riskier assets and erased much of the ground the cryptocurrency had recovered after the midterm elections.
The largest digital token dropped 5.65% to $75,880.60, according to The Motley Fool, extending its weekly loss past 5%. Ethereum slid 7.80% to $2,233.79, while Solana shed 6.22% to $89.55. CoinMarketCap data put the total value of the global crypto market at $2.56 trillion, down 4.22% in 24 hours -- a decline of more than $108 billion.
Note: Prices and 24-hour changes for BTC, ETH and SOL from FMP; total market capitalization from CoinMarketCap.
The retreat followed a bruising session in U.S. equities. The Nasdaq Composite fell 5.5%, its steepest one-day drop in 18 months, as investors questioned lofty valuations and the durability of the enormous capital spending behind artificial intelligence infrastructure. The S&P 500 lost more than 3% and the Dow Jones Industrial Average fell close to 3%.
Crypto's slide was amplified by leveraged positions. As prices fell, forced liquidations added fresh selling, deepening losses across the market. The speed of the reversal stood out because it came only a day after digital assets had staged a brief post-election rebound.
Spot Bitcoin exchange-traded funds have also been under pressure. The funds recorded more than $1.1 billion in net outflows over three consecutive sessions before a modest inflow on Wednesday. Thursday's broad market decline raises the prospect that institutional withdrawals will resume. The iShares Bitcoin Trust ETF (IBIT) fell 5.07%, the Fidelity Wise Origin Bitcoin Fund (FBTC) dropped 4.93% and the iShares Ethereum Trust ETF (ETHA) lost 7.25%.
Politics added to the caution. After Democrats made gains in the midterms, investors began weighing the prospect of tighter oversight of artificial intelligence and data-center companies, which weighed on technology shares. Uncertainty over how the new balance of power in Congress will treat digital assets also dampened appetite for risk.
Hopes that the CLARITY Act, legislation intended to give the digital asset industry a comprehensive legal framework, would clear Congress have faded after the election results. The odds of the bill advancing before the end of the year are now seen as low, leaving crypto firms and investors without clarity on the rules that will govern the sector.
Bitcoin's ability to hold the $75,000 to $76,000 band is now the focus of attention. A break below that range could open the door to a deeper correction, while the broader altcoin market faces a similar test after Ethereum, XRP and Solana gave back much of their earlier gains.
The path ahead for digital assets is likely to hinge on traditional markets. Should selling in technology and AI-related shares persist, cryptocurrencies may struggle to mount a meaningful recovery. A key signal to watch is whether Bitcoin and the wider crypto market can hold their support levels even as the Nasdaq and semiconductor stocks continue to weaken. Until such a divergence appears, or the tech selloff fades, short-lived rebounds may offer little evidence of a durable turnaround.