Bitcoin gives back its election bounce, falls 6% with tech stocks
A Nasdaq rout and $1.09 billion of liquidations pushed bitcoin to $75,568, a day after it climbed back above $80,000.
Bitcoin fell about 6% on Thursday, touching an intraday low of $75,568. The drop erased the gains it made a day earlier, when US election results pushed it back above $80,000.
The sell-off started in stocks. The Nasdaq lost about 5.5% and the S&P 500 about 4.3%, led by AI and chip names. Analysts quoted by CoinDesk said bitcoin moved tick for tick with the Nasdaq instead of acting as a safe haven.
Leverage made it worse
CoinGlass counted about $1.09 billion of liquidations across crypto over 24 hours, most of them long bets on higher prices. Open interest in bitcoin derivatives fell below $26 billion, its lowest since mid-September.
Sentiment turned quickly. The Crypto Fear & Greed Index dropped to 28, in "Fear" territory, from 50 the day before.
Levels to watch
- $80,000: Wintermute's Jasper De Maere said bitcoin needs to reclaim and hold this level to show renewed strength.
- $73,000 and $68,000: the downside targets he named if selling continues.
This week bitcoin traded like a tech stock. When leverage builds up, a stock-market scare can force sellers in bitcoin too, whatever the long-term case. Watch whether bitcoin starts to separate from the Nasdaq once the forced selling clears.
Not financial advice.