Bitcoin Breaks Below $77,000 as Asian Markets Slide Amid US Midterm Election Uncertainty
Bitcoin fell nearly 2% to below $77,000 during Tuesday’s Asian session, reversing the gains from Monday as a sharp decline in US semiconductor stocks spread across global equity markets ahead of the American midterm elections.
The latest drop pushed BTC beneath its late-Sunday low of approximately $77,600, which had briefly attracted buyers and sparked a temporary recovery.
Altcoins experienced heavier losses, with Zcash (ZEC) leading the decline among major tokens. ZEC plunged almost 10% to around $1,140, surrendering much of the strength it displayed on Monday.
Hyperliquid’s HYPE declined 5% to approximately $84, while Solana (SOL) dropped 3% to around $92. BNB lost 2%, falling below $700. Ether and Dogecoin also slipped roughly 2%, with ETH trading slightly above $2,250.
XRP showed little movement near $1.25, while Tron (TRX) bucked the broader market trend with a gain of approximately 2%, according to CoinDesk data.
Chip Stock Rout Spreads Across Global Markets
The latest cryptocurrency sell-off followed mounting losses across US technology stocks, particularly semiconductor companies.
A gauge tracking US chipmakers extended its decline for a third consecutive session, taking its total losses to approximately 12%. The Nasdaq 100 also fell 10% from its recent high, meeting the commonly used definition of a market correction.
The S&P 500 weakened by another 0.5%, reflecting broader pressure on equities as investors reduced exposure to risk-sensitive assets.
Asian markets followed Wall Street lower. South Korea’s Kospi, which has significant exposure to technology companies, dropped more than 3%. The MSCI Asia Pacific Index also declined nearly 1%, while Japanese markets remained closed for a holiday.
Chinese stocks moved lower despite the central bank’s efforts to encourage financial institutions to use additional tools to support the domestic equity market.
The Chinese yuan also reversed course, ending a 13-day rally that had marked its longest winning streak since 1996. The move followed the People’s Bank of China’s decision to increase foreign-currency reserve requirements for banks.
Oil Declines on Hopes of Iran Conflict De-escalation
Crude oil prices moved sharply lower as investors became more optimistic that the conflict involving Iran could be nearing an end. Expectations of reduced geopolitical disruption eased concerns about potential energy supply interruptions.
However, cheaper oil failed to lift broader market sentiment, with technology shares and cryptocurrencies continuing to face selling pressure.
The US midterm elections are adding another layer of uncertainty. Americans are heading to the polls on Tuesday, and initial results are expected to become available when Asian markets reopen on Wednesday.
Investors are monitoring the outcome for potential changes to US economic priorities and financial market expectations. For Bitcoin and other cryptocurrencies, the combination of weakening technology stocks, geopolitical developments, and political uncertainty is keeping market sentiment under pressure.
