Bitcoin falls below $76,000 as AI selloff hits crypto
Bitcoin fell below $76,000 as an AI stock rout dragged crypto lower and forced more than $1 billion in liquidations; Wintermute’s Jasper De Maere stayed positive longer term.
The Chain Times Desk2 min read
Bitcoin fell below $76,000 on Thursday as a selloff in AI-linked stocks spread to crypto, reversing the previous day’s post-election rally. CoinDesk reported that Bitcoin was down 5.2% over 24 hours, while the Nasdaq fell 5.5% and the Philadelphia Semiconductor Index dropped 12%.
The pullback matters to crypto investors because the AI trade has become a market force for both digital assets and listed crypto firms. CoinDesk said concerns about slower data-center construction weighed on the AI trade, while earnings from chipmakers added pressure.
Why did AI concerns reach crypto?
Investors were weighing the U.S. midterm results, which gave Democrats control of both chambers of Congress. FalconX’s Joshua Lim told CoinDesk that traders were responding to the possibility that political opposition could slow data-center construction. That could affect Bitcoin miners, many of which have expanded into AI computing.
GSR’s Carlos Guzman told CoinDesk that investors were already questioning whether large AI infrastructure investments would pay off. He said the election result added to those concerns.
How did crypto assets and shares fare?
CoinDesk reported that major cryptocurrencies held up better than many stocks tied to AI. Bitcoin was down about 5.5% at one point in the 24-hour period; Ether fell 7.5%, while XRP and Solana each lost 5.5%.
Crypto-linked stocks fell more sharply. Coinbase, Circle and BitGo dropped between 10% and 15%, while Bitcoin treasury company Strategy lost 9.6%, according to CoinDesk.
The market move also forced traders out of leveraged positions: bets made with borrowed money. CoinDesk, citing CoinGlass, reported that more than $1 billion in crypto derivatives positions were liquidated in 24 hours, mostly bullish bets. Guzman said the pullback in risk appetite had been amplified by that leverage.
Why does Wintermute’s trader see a brighter medium term?
Wintermute’s Jasper De Maere cautioned against reading too much into one day’s selling. As quoted by CoinDesk, he said crypto had held up relatively well during the AI-stock turmoil and that wider adoption supported the longer-term outlook. “Medium term still glass half full,” he said, while advising investors to watch for potential bargains as correlations across assets remain high.
Sources and documents
- CoinDesk reported — coindesk.com