Bitcoin’s post-election rebound reversed on Thursday, November 5, 2026, as a technology-stock selloff spread to crypto, according to Decrypt. The report put Bitcoin near $76,500, down nearly 5%, with roughly $428 million in crypto long positions liquidated in one hour.
Historical report: The original article was published on November 6, 2026, at 00:29:11 UTC+8. Prices, political developments and market expectations below reflect that reporting window, not current conditions.
A rally with a leveraged foundation
Bitcoin had climbed above $80,000 on Wednesday before retreating toward levels seen before that jump. Ethereum lost more than 5% during Thursday’s selloff, other major tokens posted comparable declines, and roughly 90% of the top 100 cryptocurrencies were in the red.
The reversal followed a rally that Decrypt described as heavily supported by traders closing losing bets against Bitcoin. Citing CoinGlass, the article reported about $378 million in short liquidations in one hour during Wednesday’s move above $80,000.
Thursday sent that mechanism into reverse. As prices fell, exchanges automatically closed underfunded long positions, adding selling pressure. The distinction matters: forced buying can make a rebound look forceful without establishing that sustained demand has returned.
Election relief runs into the cost of AI
Decrypt linked the broader market turbulence to shifting interpretations of Democrats’ sweep of Congress, alongside concerns about AI spending and interest rates.
Investors had initially worried about tougher oversight of industries favored by President Donald Trump. Stocks then rallied Wednesday as traders wagered that gridlock would limit major policy changes and falling oil prices would ease inflation. Bitwise Europe analyst André Dragosch told Decrypt that the Democratic sweep was “largely priced in.”
By Thursday, attention had shifted toward potential obstacles to the data-center buildout, particularly where voters opposed rising electricity costs and new facilities. According to the article, voters in at least 29 U.S. jurisdictions backed restrictions on data-center development, though not all measures were binding. Reuters reported UBS’s estimate 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 dropped about 8%, while CoreWeave and Nebius fell by double digits. Tesla declined roughly 9.5%, extending losses after Elon Musk spent heavily supporting Republican candidates.
The S&P 500 was down about 2.6% in late-morning trading, while the Nasdaq fell nearly 4%, approaching a correction—a 10% decline from its peak. Decrypt also described a separate intraday S&P 500 move of almost 4% in minutes, its largest bearish intraday movement in months.
“The market’s moving from the promise of AI to the price of AI,” Incline Investment Management chief executive Ted Parkhill told Reuters.
Crypto had vulnerabilities before the vote
The report said the crypto market had already lost roughly $300 billion over the preceding month, amid concerns about AI spending, rising borrowing costs and fallout from what it described as the previous week’s multibillion-dollar Binance hack.
Traders also expected another Federal Reserve rate increase in December. The October jobs report, due Friday, remained a potential catalyst for those expectations; higher rates generally weigh on demand for speculative investments.
In Washington, Decrypt reported that Democratic control complicated efforts to revive the stalled Clarity Act, a proposed federal digital-asset rulebook. The new Congress would not take office until January.
The chart signal was still unconfirmed
Bitcoin’s hourly chart showed selling through $79,000 toward $76,100. Decrypt identified $75,000 as the next test and $80,000 as a level whose recovery could ease pressure.
Its daily candle was threatening a bearish engulfing pattern that could erase Wednesday’s breakout. That candle had not closed when the article was published, so the pattern remained unconfirmed. Those levels and signals were contemporaneous observations, not established outcomes or current trade calls.