Bitcoin Lost 6% Amidst Sharp Selloffs in US Tech, AI Stocks
Bitcoin (BTC) price is down 6.10% to $75,581.90 in 24 hours, erasing its post-election gains amid a broad risk-asset selloff. It shows a strong correlation (98%) with the S&P 500, indicating a macro-driven move.
BTC price movement mirrored a sharp selloff in U.S. technology, and AI stocks spilt into crypto markets, driving a correlated downturn. A sharp downturn in U.S. tech stocks, led by semiconductors and AI shares, drove a flight to safety.
The Nasdaq Composite fell 5.5% on November 5, its worst day since April 2025. Bitcoin’s 24-hour correlation with the S&P 500 ETF (SPY) hit 0.98, showing it moved in lockstep with traditional markets amid fears over AI spending sustainability and post-election policy uncertainty.
Bitcoin acted as a high-beta risk asset, not a decoupled safe haven, during this equity market shock. U.S. spot Bitcoin ETFs saw $430.20 million in net outflows on November 5, reversing the previous day’s inflows.
Concurrently, leveraged long positions faced massive liquidations, totalling $328.22 million for BTC in 24 hours. This created a forced-selling feedback loop.
Institutional demand weakened temporarily, and excessive leverage exacerbated the downside move. A sustained return to ETF inflows would signal renewed institutional buying interest.
The immediate focus is the U.S. nonfarm payrolls report due at 8:30 a.m. ET on November 6. ET on November 6. A strong report could reinforce hawkish Fed expectations and further pressure risk assets.
Technically, Bitcoin is testing critical support at $75,000. If it holds, a relief rally toward $77,000 is possible. However, a daily close below $75,000 opens the path to the 200-day moving average near $73,200.
The trend is bearish in the very short term, with price action hinging on macro data and key technical holds. The market’s reaction to the jobs data and whether Bitcoin can reclaim $77,000 will determine whether it can stem the selling.
Bitcoin’s drop was primarily a macro-driven risk-off event, compounded by ETF withdrawals and a leverage flush. The immediate direction depends on holding $75,000 support.
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