Bitcoin dropped 5% amid AI stock selloff and liquidations, erasing post-election gains as policy uncertainty weighs on markets.
Macro & Markets ·
Bitcoin fell nearly 5% to around $76,500 on Thursday as a technology stock selloff triggered roughly $428 million in crypto long liquidations within an hour, erasing gains from the previous day's rally. The decline coincided with the Nasdaq approaching correction territory amid concerns over artificial intelligence spending and Democratic control of Congress, which raised questions about data-center development restrictions and regulatory oversight of the crypto industry. Wednesday's rebound had been driven largely by short covering rather than new buyer demand, making it vulnerable to reversal when market sentiment shifted toward concerns about AI investment returns and policy uncertainty.