Bitcoin Falls to $75,700 as AI Stock Selloff Triggers $1.1 Billion in Crypto Liquidations
Bitcoin dropped to $75,700 on Thursday after briefly reaching $80,000 a day earlier, as a sharp selloff in artificial intelligence stocks spread across Wall Street and intensified pressure on cryptocurrency markets. Ether also declined more than 7% to $2,247, according to The Block.
The downturn triggered substantial losses among leveraged crypto traders. Data from CoinGlass, cited by The Block, showed that approximately $1.1 billion in positions were liquidated over 24 hours, involving nearly 211,000 positions.
Crypto Liquidations Reach $1.1 Billion
Liquidation activity accelerated during the market decline. In one four-hour period, reported losses reached $879.92 million, including $818.90 million from long positions. The figures reflect leveraged positions being forcibly closed as prices moved against traders.
These liquidations should not be confused with withdrawals from spot Bitcoin exchange-traded funds (ETFs). Liquidation data measures forced closures of leveraged trading positions, while ETF flow figures track net money entering or leaving investment funds.
Spot Bitcoin ETFs Record $1.16 Billion in Outflows
Spot Bitcoin ETFs had already experienced significant withdrawals in the days leading up to Thursday's price decline. Data from FarSide showed outflows of $643.2 million on October 30, followed by $398.6 million on November 2 and $115.6 million on November 3. Combined, the withdrawals reached $1.16 billion over the three-day period.
The direction reversed on November 4, when the funds recorded a net inflow of $74.6 million. However, the aggregate figure concealed sharply different results among major issuers. Fidelity's FBTC attracted $236.7 million, while BlackRock's IBIT recorded an outflow of $201.2 million.
November 5 ETF figures were not yet complete, with several companies still expected to report their data. The latest inflow also followed an earlier period of selling, including a single-day outflow of $487 million in October reported by Cryptopolitan.
Given the preceding withdrawals, the November 4 recovery may represent a temporary interruption in outflows rather than evidence of a sustained improvement in demand for spot Bitcoin ETFs.
AI Stock Selloff Adds Pressure to Bitcoin
Bitcoin's decline coincided with a broad retreat in technology shares, particularly companies linked to artificial intelligence. The Nasdaq closed Thursday down 5.5% at 24,315.00, leaving the index 11.9% below its October peak. The S&P 500 fell 4.4%, while Nvidia shares lost 9.3%.
Investors have increasingly questioned whether heavy spending on AI infrastructure and development will generate sufficient returns. High borrowing costs and potential post-election restrictions affecting data centers have added to concerns about the sector's outlook.
Swissquote analyst Ipek Ozkardeskaya told Reuters, “Coming into this earnings season, there were worries that AI spending was too much.”
J.P. Morgan's Michael Cembalest reported an 8% decline in hedge funds' gross long-short exposure and approximately $4 trillion in AI-related off-balance-sheet commitments. The commitments are not immediately payable debts. Cembalest also warned that 37.5 gigawatts of planned 2028 capacity was part of the broader discussion, although the available source material does not provide the complete context of that warning.
Bitcoin's Relationship With Technology Stocks
Bitcoin's correlation with technology equities has become an important factor in how investors assess movements across both markets. Foundry Labs identified a 0.41 correlation between Bitcoin and the Nasdaq-100 tracker QQQ over a 63-day period. The research also found that publicly traded Bitcoin miners increasingly behave like AI infrastructure stocks.
S&P Global has similarly observed Bitcoin moving alongside equities during periods when investors reduce exposure to riskier assets. A 2025 study found that election-related volatility affected cryptocurrencies, stocks and oil.
These observations provide context for the simultaneous declines in Bitcoin and technology shares, but they do not establish that the AI stock selloff directly caused Bitcoin's Thursday drop.
Wintermute Highlights $73,000 and $68,000 Bitcoin Levels
With Bitcoin struggling to sustain its rebound, market maker Wintermute characterized Wednesday's recovery as short-lived optimism. The firm identified $73,000 and $68,000 as important price levels to monitor and said it wanted to see Bitcoin hold above $80,000 before adopting a more positive outlook.
Political developments could also influence the regulatory environment for digital assets. Paul Howard of Wincent said recent gains by Democrats in Congress could make passage of the Clarity Act more complicated.
Upcoming spot Bitcoin ETF reports will provide further evidence of whether the November 4 inflow marked a recovery in investor demand or merely a pause in the preceding withdrawals. Meanwhile, Bitcoin's ability to stabilize will remain in focus as cryptocurrency traders assess conditions across broader financial markets.
source: cryptopolitan
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
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