Bitcoin Erases Election Rally as AI Stocks Plunge, $428 Million in Crypto Longs Get Wiped Out
Bitcoin fell nearly 5% to about $76,500, erasing its post-election rally, as a technology selloff spread to crypto. Ethereum and most major tokens also dropped, while roughly $428 million in crypto long positions were liquidated in an hour, intensifying selling. The decline coincided with steep losses in U.S. stocks, particularly technology and semiconductor shares, amid concerns over AI spending, interest rates and potential limits on data-center expansion. Democratic control of Congress may also complicate efforts to advance the proposed Clarity Act, though political uncertainty alone does not explain the move. Crypto markets were already weakened by a roughly $300 billion decline over the prior month and fallout from a major Binance hack. Bitcoin’s next near-term test was around $75,000; a possible bearish chart pattern remained unconfirmed.
