Bitcoin slides toward $75,000 as tech sell-off fuels liquidations

The Nasdaq Composite fell 5.5% on November 5, while the S&P 500 lost 4.3% and the Dow Jones Industrial Average dropped 3.4%. Semiconductor stocks were among the hardest hit: the Philadelphia Semiconductor Index sank 12%, and Nvidia shares fell more than 9%. Investors were concerned that political opposition could slow AI data-center construction, alongside doubts about the returns on major AI infrastructure investments.

Crypto-linked shares also declined, with Coinbase and Strategy down around 10%. FalconX’s Joshua Lim told CoinDesk that investors were weighing the prospect of slower data-center development. GSR’s Carlos Guzman said, “The midterms appear to have triggered this sell-off,” citing concerns about opposition to data-center expansion. K33’s Vetle Lunde described Bitcoin’s move alongside the Nasdaq as a “huge correlated move.”

Forced selling added to the decline. CoinGlass data showed about $1.08 billion in leveraged crypto positions liquidated over 24 hours on November 5. Long positions made up $954.38 million of that total, compared with $127.30 million in short liquidations. Bitcoin accounted for roughly $280.65 million and Ethereum for $174.86 million. Bitcoin futures open interest fell below $26 billion from $28 billion earlier in the session, its lowest level since mid-September.

US spot Bitcoin ETFs had also seen about $1 billion in withdrawals in the days after the October 29 Binance hack, Bloomberg reported. BlackRock’s IBIT accounted for roughly $900 million of the outflows. Although the funds recorded $74.6 million in net inflows on November 4, Glassnode analysts said most Bitcoin held by short-term investors—those who bought within the previous 155 days—was at an unrealized loss.

The $75,000 area is the immediate level analysts are watching. Paul Spirgel identified $75,001 as a key Fibonacci retracement level, with the 200-day moving average near $73,188. A sustained break below $75,000 could expose Bitcoin to further losses toward $73,000, while a move back above $80,000 would signal renewed short-term strength, Wintermute trader Jasper De Maere said.