Bitcoin crashes 6% to 7-week low as US stocks erase election gains

Bitcoin suffered the sharpest clearly stated price move, falling more than 6% to $75,463. That was its lowest price since Sept. 16. The drop matters because it brought Bitcoin close to the bottom of its one-month trading range and threatened a widely watched trend line.

U.S. stocks also fell sharply. The S&P 500 declined 2.7%. The tech-heavy Nasdaq Composite Index dropped 4.2%, reaching its lowest level since July 29. The article does not provide the indexes’ exact point prices, so only their percentage losses and dated lows can be reported.

The declines reversed gains made after a Democrat sweep of the House and Senate. Bitcoin briefly moved below its 50-week simple moving average at $75,733. The simultaneous weakness showed that crypto and equities were responding to a broader retreat from risk, especially technology stocks, rather than continuing the post-election rally.

Bitcoin and U.S. stocks initially rose after Democrats swept the House of Representatives and Senate. That reaction reflected expectations around the election result. On Thursday, however, traders began reassessing what the new political direction could mean for technology companies, markets, and the economy.

The clearest trigger described was a sharp rotation out of tech stocks. The Nasdaq fell more than 4%, while the S&P 500 lost 2.7%. Concerns that Democrat policies could be less favorable to artificial intelligence also raised questions about already fragile capital-spending plans. Bitcoin then fell alongside other risk assets as the stock sell-off intensified.

Other uncertainty added pressure. Oil rose after reports of fresh tanker strikes in the Middle East and uncertainty about steps to resolve the US-Iran war. Jordan Watson warned that investors might face more volatility and said the earlier equity gains should not be treated as an all-clear signal.

A 50-week simple moving average, or SMA, averages Bitcoin’s closing prices over its latest 50 weeks. As each new week arrives, the oldest observation drops out and the newest enters. This smooths daily price noise and shows a longer-term trend reference.

Traders often treat such an average as possible support. Support is a price area where buying may increase or selling may slow. If many market participants watch the same level, their orders can affect behavior around it. The level is not guaranteed to hold, however, and the article describes it as being under pressure.

Bitcoin’s 50-week SMA stood at $75,733. The price briefly fell below it while reaching $75,463. That breach made the average less secure as support and focused attention on the bottom of Bitcoin’s one-month range. A sustained break could increase concern about another deeper decline.

Support is a price area where traders expect buying may help limit further declines. When Bitcoin breaks below an important support level, that expectation can weaken. Sellers may become more confident, while buyers may wait for a lower price or leave positions entirely.

The article gives a historical comparison from crypto trader Rekt Capital. In May, Bitcoin moved sideways around $80,000 before breaking down. That decline eventually produced new macro lows of $57,000 in late June. The example shows how a rangebound market can change direction after support or range boundaries fail.

Bitcoin was testing this possibility near $76,000. It had already slipped below the 50-week SMA at $75,733 and approached the bottom of its one-month range. The article does not predict a specific next price, but a decisive break could increase volatility and expose the market to deeper losses.

Crypto liquidations occur when trading platforms close positions that no longer meet their required collateral levels. They are especially important in leveraged markets, where traders control larger positions than their own capital would normally allow. A sudden price move can therefore force many positions to close.

The article reports nearly $500 million in crypto positions liquidated during the first hour of U.S. trading. Total liquidations over 24 hours were nearing $850 million. When leveraged long positions are closed during a Bitcoin drop, their assets may be sold into the market. That selling can push prices lower and trigger additional liquidations.

This creates a feedback loop: falling prices force closures, forced closures add selling, and additional selling causes further declines. The figures show how quickly the sell-off spread through crypto markets. Liquidations do not independently prove the next direction, but they help explain why the decline became abrupt and intense.

Congressional control matters because investors assess how political leaders might shape policy. A new balance of power can change expectations for regulation, spending, economic measures, and the business environment. Those expectations affect how investors value technology companies and plan their portfolios.

In this article, concerns centered on whether Democrat policies could be less favorable to the artificial-intelligence sector. Investors also questioned whether those policies might curb already precarious capital-expenditure plans. That concern helped explain the sharp rotation out of technology stocks after the initial election rally.

The market response was uncertain rather than settled. Economist Mohamed El-Erian questioned whether the political shift would actually slow technology and whether the wider economy could thrive without technology earnings and spending. Jordan Watson warned of more volatility. As investors reassessed policy implications, they sold equities and Bitcoin together, reversing the post-election gains.

A risk asset is an investment whose value is sensitive to economic conditions, policy expectations, and investor confidence. Its price may rise strongly when markets feel optimistic, but it can fall quickly when uncertainty increases. The article treats Bitcoin, technology stocks, and broader equities as risk assets responding to the same market mood.

The sell-off provides a clear example. After initially gaining on the election result, Bitcoin fell more than 6%. At the same time, the Nasdaq dropped 4.2% and the S&P 500 declined 2.7%. Traders were rotating out of technology stocks, while concerns about policy, artificial-intelligence spending, oil, and geopolitical developments increased uncertainty.

Investors may sell these assets together because they want less exposure to the same broad risks. That shared selling can make declines appear connected, even though the assets are different. In this case, crypto liquidations added further pressure, helping turn a stock-market reversal into a wider risk-asset rout.