Why is crypto down today? Bitcoin plunged below $76,000 as a sharp selloff in semiconductor stocks triggered more than $1 billion in leveraged liquidations and drove $430 million in withdrawals from Bitcoin ETFs.
Bitcoin’s latest decline followed a steep Wall Street downturn on Thursday, November 5. BTC dropped roughly 6% below the $76,000 threshold as traders faced $1.03 billion in forced liquidations and U.S. spot Bitcoin ETFs recorded $430 million in net outflows. Bearish momentum continued into Friday’s early trading.
Bitcoin was trading around $75,700 on Binance Friday morning, compared with $80,547 at the beginning of Thursday’s session. Ethereum declined 8.2% to $2,218, XRP fell 9.7% to $1.18, and Solana dropped 6.9% to $89.22. The Crypto Fear & Greed Index also weakened, falling from 50 to 28 and entering the “Fear” zone.
The downturn originated in the technology sector. The Philadelphia Semiconductor Index plunged 12.2%, with Nvidia and AMD shares falling 9.3% and 17.3%, respectively. The Nasdaq Composite lost 5.5%. Crypto-related stocks also suffered, as Strategy declined 9.3% and Coinbase dropped 9.7%.
The combination of falling technology stocks, leveraged positions and ETF withdrawals intensified the crypto market downturn. The key question now is whether Bitcoin can establish a stable support level or face another wave of selling.
Why Is Crypto Down Today? Chip Stocks and Leveraged Positions Trigger a Selloff
Bitcoin’s decline accelerated shortly after Wall Street opened at 14:30 UTC. Within an hour, the cryptocurrency experienced a sharp price breakdown. Binance’s 15:00 UTC trading candle fell from $78,288 to $75,568, recording the busiest hour of the day with $513 million in trading volume.
According to Yahoo Finance’s market coverage, the broader equity selloff was associated with the Democrats’ decisive midterm victory and concerns about its potential impact on AI infrastructure investment and regulation. Semiconductor companies, which had been among the biggest beneficiaries of the artificial intelligence boom, experienced significant losses.
Leveraged trading further intensified the market decline. CoinGlass data showed $1.03 billion in liquidations over 24 hours as exchanges automatically closed positions after traders failed to maintain sufficient margin. Long positions accounted for $924.94 million, or 89.4% of total liquidations, affecting 199,365 traders.
Bitcoin long positions recorded $255.88 million in liquidations, while Ether longs lost $163.83 million. The largest individual liquidation involved a $10.94 million ETHUSDT position on Binance.
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Bitcoin ETFs Record $430 Million in Outflows
U.S. spot Bitcoin ETFs experienced $430.2 million in net withdrawals on Thursday, with all 12 funds reporting negative flows. SoSoValue data indicated that Fidelity’s FBTC accounted for the largest outflow, losing $199.87 million. BlackRock’s IBIT followed with $104.97 million in withdrawals.
The latest ETF outflows erased the previous day’s positive momentum. On November 4, spot Bitcoin ETFs attracted $74.6 million in net inflows, marking the only positive-flow session of the month so far.
Consequently, November’s first four trading sessions generated $869.8 million in cumulative ETF outflows. This followed an additional $515.9 million in withdrawals recorded throughout October.
Fidelity’s FBTC activity remains particularly noteworthy. The fund received $236.7 million in inflows on Wednesday while BlackRock’s IBIT experienced withdrawals. However, FBTC reversed much of its previous gains during Thursday’s trading session.
BTC Price Analysis: Bitcoin Breaks Below the 200-Day EMA
Bitcoin closed Thursday at $76,088, slipping below its 200-day exponential moving average (EMA), positioned at $76,536. The technical indicator had previously provided support during the October market correction.
Bitcoin’s 50-day EMA, currently at $79,822, now represents an important resistance level. A recovery above this average could bring the $81,971 price peak recorded before last week’s Binance hack into focus.
On the downside, Bitcoin’s immediate support lies near the $74,968 swing low. If the price breaks below this level, the next potential support could emerge around $72,598, corresponding to the 50% Fibonacci retracement of the July-to-September rally.
Despite the substantial liquidation wave, Bitcoin perpetual futures funding rates on OKX remain slightly positive. This suggests that some bullish leveraged positions are still active, leaving the market vulnerable to additional liquidations if prices continue falling.
The primary explanation for today’s crypto downturn remains the weakness across Nasdaq-listed technology stocks, particularly semiconductor companies. If chip stocks recover when U.S. markets reopen on Friday, Bitcoin could attempt to reclaim its 200-day EMA.
However, continued selling pressure in the technology sector could push BTC toward the $74,968 support zone. A decisive break below that level may increase the risk of a deeper correction toward $72,598.
