Bitcoin fell below $76,000 on Thursday as a fast rally in risk assets reversed. TradingView data showed BTC/USD dropping more than 6% to $75,463 on Bitstamp, its lowest since Sept. 16. The move came as US stocks gave back gains tied to the midterm election results.
Stocks give back election gains
Equities sold off sharply as traders moved out of tech. The S&P 500 fell 2.7%, and the Nasdaq Composite lost more than 4%, reaching its lowest level since July 29. The drop followed a quick rise after Democrats won control of the House and Senate, a result that had initially lifted market sentiment.
Jordan Watson, a portfolio manager at Tandem Investment Advisors, told CNBC that more volatility may lie ahead as investors work through election results and possible policy effects. He also said the equity gains after the midterms should not be read as an all-clear signal.
Oil moved the other way. Reports of fresh strikes on tankers in the Middle East and uncertainty over how Democrats might handle the US-Iran war pushed crude higher. WTI returned above $90 a barrel, while Brent gained 2.5% to approach $97.
Tech concerns and crypto liquidations
There is also debate over what Democrat policies mean for the AI sector. Some worry the new political path could weigh on capital spending plans that were already fragile. Economist Mohamed El-Erian questioned whether the change in Congress would really slow tech down over the long run. He called the day’s tech weakness not surprising, though he was less sure about the wider impact.
Crypto markets felt the pressure quickly. CoinGlass data showed nearly $500 million in positioning liquidated in the first hour of US trading, with 24-hour total liquidations nearing $850 million at the time of writing.
Bitcoin tests key support
BTC/USD moved toward the bottom of its one-month range and risked losing support at the 50-week simple moving average, around $75,733. Crypto trader Rekt Capital noted that Bitcoin was repeating behavior from May. Back then, rangebound moves around $80,000 gave way to a breakdown and new macro lows near $57,000 in late June.
For now, the market is watching whether the 50-week line holds. A clean break below it could add to the cautious mood, especially with stocks still digesting the election and oil prices rising. Maybe the next few sessions will tell whether this is a pause or the start of a deeper move.
