Bitcoin gave back its post-election rebound on Thursday, November 5, 2026, falling nearly 5% to about $76,500 as a technology-stock selloff spread to crypto. According to Decrypt, roughly $428 million in crypto long positions were liquidated in one hour, amplifying the reversal from Wednesday’s move above $80,000.
The decline returned Bitcoin close to levels seen before that rally. It also left a potential bearish chart pattern unconfirmed: Thursday’s daily trading candle had not closed when the article was published.
Technology stocks and election concerns weigh on markets
The selloff extended well beyond Bitcoin. Roughly 90% of the top 100 cryptocurrencies were trading lower, with Ethereum down more than 5% and other major tokens posting comparable losses.
In late-morning U.S. trading, the S&P 500 was down about 2.6%, while the Nasdaq had fallen nearly 4%, approaching a correction—a 10% decline from its peak. Decrypt also described a separate, rapid intraday move in which the S&P 500 dropped almost 4% within minutes.
The report linked the change in sentiment partly to investors reassessing the implications of Democrats winning control of Congress. Wednesday’s rally had reflected bets that divided government would limit major policy changes, while falling oil prices could ease inflation. Bitwise Europe analyst André Dragosch told Decrypt that the Democratic sweep was “largely priced in.”
By Thursday, attention had shifted toward potential scrutiny of data-center expansion, particularly where voters opposed rising electricity costs and new facilities. Voters in at least 29 U.S. jurisdictions backed restrictions on data-center development, though not all the measures were binding. According to Reuters, UBS estimated that potential pauses could threaten 30% of planned U.S. data-center capacity additions in 2028.
“We suspect there is going to be some scrutiny on this aggressive AI buildout,” Swissquote senior analyst Ipek Ozkardeskaya told Reuters.
The Philadelphia Semiconductor Index fell about 8%, while CoreWeave and Nebius suffered double-digit declines. Tesla dropped roughly 9.5%, extending losses after Elon Musk spent heavily supporting Republican candidates. Investors were also questioning the returns on large AI investments.
“The market’s moving from the promise of AI to the price of AI,” Incline Investment Management chief executive Ted Parkhill told Reuters.
For crypto policy, Decrypt reported that Democratic control complicated efforts to revive the stalled Clarity Act, a proposed federal framework for digital assets. The new Congress would not take office until January.
Liquidations amplified Bitcoin’s reversal
The report identified leverage as another important part of the move, rather than attributing Bitcoin’s losses to politics alone.
Wednesday’s advance above $80,000 had been fueled in part by traders being forced out of bearish positions. CoinGlass data cited by Decrypt showed about $378 million in short liquidations within one hour during that rally.
Thursday’s decline reversed that mechanism. As prices fell, exchanges automatically closed underfunded long positions, creating additional selling pressure. The roughly $428 million in hourly long liquidations covered crypto broadly, not Bitcoin alone.
The market entered the election period already under strain. Decrypt reported that crypto had lost roughly $300 billion in value over the preceding month amid concerns about AI spending, rising borrowing costs and the fallout from a multibillion-dollar Binance hack the previous week.
Rate expectations and an unfinished technical signal
At the time of publication, traders expected another Federal Reserve rate increase in December as inflation persisted. The October jobs report, due that Friday, could change those expectations. Higher rates generally weigh on demand for speculative investments.
On Bitcoin’s hourly chart, Decrypt described selling through $79,000 to near $76,100. Its technical assessment identified $75,000 as the next test, while a recovery above $80,000 could ease pressure.
The report also flagged a possible bearish engulfing pattern on the daily chart, which could erase Wednesday’s breakout in one session. That remained a conditional observation, not a confirmed signal, because Thursday’s candle was still forming.
Original source: Decrypt. Published November 6, 2026, at 00:29:11 UTC+8, covering the November 5 U.S. trading session.
