The post-midterm rally lasted just one day. A heavy sell-off in US tech stocks has spread into crypto, wiping out the gains Bitcoin, Ethereum and XRP made after the US elections. More than $1 billion in leveraged crypto bets were wiped out in the fall.
The trigger is growing concern over what a Democratic-controlled Congress could mean for artificial intelligence, the theme that has driven markets for three years.
How Hard Crypto Is Falling
According to market data, the largest coins are deep in the red:
- Bitcoin: $76,073, down 4.9% in 24 hours and 6.5% over 7 days
- Ethereum: $2,256, down 6.6% in 24 hours
- XRP: $1.24, down 5.4% in 24 hours
- Solana: $89.96, down 6.6% in 24 hours and 12% over the week
- Hyperliquid: $78.58, down 7.8% in 24 hours and 15.7% over the week
- Dogecoin: $0.0718, down 6.7% in 24 hours
Binance data showed Bitcoin falling as low as $75,568 and Ethereum as low as $2,236.78 during the session.
$1 Billion In Liquidations
Traders betting on higher prices took the biggest hit. According to CoinGlass:
- About $880 million in positions were liquidated in just four hours, $819 million of them long bets
- Total liquidations over 24 hours passed $1.03 billion
- 198,192 traders were affected
- The largest single liquidation, worth $10.94 million, was on Binance’s ETH/USDT pair
Wall Street’s AI Trade Breaks Down
The selling started in stocks. A day after the Dow gained more than 1,500 points on the election results, its best day since April 2025, the mood reversed sharply. In intraday trading, the Nasdaq fell about 5.1%, the S&P 500 about 3.4% and the Dow about 2.4%.
Tech names took the heaviest losses, according to market figures shared on X:
- AMD: down about 12.5%
- Micron: down about 10%
- Tesla: down about 9%
- Nvidia: down about 7%, losing around $300 billion in value
- Broadcom: down about 5.5%
Why Investors Are Worried
Investors fear the new Congress could bring tighter rules for the AI industry. Democrats are also reported to be planning investigations into the Trump family’s business dealings, including its crypto ventures.
Was It A Bull Trap?
Some traders on X say Wednesday’s sharp rally was a trap that lured in buyers before the drop. Whatever the cause, the reversal was fast: the S&P 500 gave back all of its post-election gains within the first hours of Thursday’s trading.
The crypto sell-off also follows reports that the US military is preparing for a possible return to major combat in Iran, which adds to the risk-off mood.
What Comes Next
Crypto is trading closely with tech stocks right now, so the Nasdaq is the main thing to watch. For Bitcoin, the $75,000 to $76,000 zone is the key support. A clear break below it could open the way to a deeper slide, while holding there would give buyers a base to recover from.
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