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Bitcoin slips below $76,000 as AI selloff hits crypto

Bitcoin fell below $76,000 as AI stocks plunged, but major crypto losses were smaller; Wintermute's Jasper De Maere said the medium-term outlook stayed positive.

The eCrypto Desk

Bitcoin slips below $76,000 as AI selloff hits crypto

Bitcoin fell below $76,000 on Nov. 5 as a selloff in artificial-intelligence stocks spread to crypto markets, wiping out the previous day’s rally. CoinDesk’s market report put Bitcoin down 5.2% over 24 hours and said crypto-related stocks fell more sharply.

The Nasdaq dropped 5.5% and the Nasdaq 100 fell 6.4%. Crypto miners, which have been shifting some operations toward AI computing, lost 15% to 20%, according to CoinDesk.

Why did the AI selloff reach crypto?

Investors were weighing whether political opposition could slow the building of data centers used to power AI. Democrats won control of both chambers of Congress in Tuesday’s midterm elections, and analysts cited concern that this could complicate data-center expansion.

Joshua Lim, global co-head of markets at crypto brokerage FalconX, told CoinDesk that selling had returned as investors considered the prospect of slower construction. GSR research vice president Carlos Guzman also pointed to existing doubts about the returns on AI infrastructure spending and disappointing chipmaker earnings.

How much crypto trading was forced to close?

More than $1 billion in crypto derivatives positions were liquidated in 24 hours, CoinDesk reported, citing CoinGlass. Liquidations occur when an exchange closes a trader’s leveraged position after losses breach its required threshold; most of the positions were bullish bets on rising prices.

The amount was the largest such wipeout since at least Oct. 28–29, when Bitcoin fell from nearly $82,000 to $76,000. Ether fell 7.5% over the latest 24-hour period, while XRP and Solana each lost 5.5%.

What does Wintermute see beyond the selloff?

Wintermute trader Jasper De Maere said crypto had held up relatively well against the turmoil in AI stocks and pointed to broader adoption as support for the longer-term outlook. He cautioned against drawing too much from a single day, while saying the medium-term view remained “glass half full.”

The next thing to watch is whether Bitcoin can hold near $76,000 as investors assess the midterm results’ possible effect on data-center expansion.

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