Bitcoin has dropped below the $77,000 level, reversing a recent rebound above $80,000 and triggering a wave of forced selling across cryptocurrency markets.
The decline accelerated shortly after U.S. stock markets opened, with the leading cryptocurrency falling as much as 5–6 percent on the day and briefly trading near $75,500–$76,000 before a partial recovery.
Data from market trackers showed roughly $400 million in leveraged long positions liquidated in a single hour as the price broke lower, matching reports from accounts monitoring real-time futures activity.
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Broader 24-hour liquidation figures climbed into the $700 million to $1 billion range, with the large majority consisting of long bets. More than 100,000 to 200,000 traders were affected across major exchanges during the session.
The move coincided with a sharp sell-off in technology shares. The Nasdaq composite fell several percentage points, led by declines in semiconductor and artificial-intelligence-related stocks, as investors grew concerned about valuations, spending on data centers, and the potential for tighter oversight following U.S. midterm election results.
Risk assets broadly came under pressure, and the crypto market followed, with Ethereum, Solana, XRP, and many other tokens posting similar or steeper losses.
The sell-off also triggered a wave of forced liquidations across the crypto derivatives market. About $879.92 million in positions were liquidated over four hours, including $818.90 million in longs and $61.02 million in shorts.
The rapid price action illustrated how high leverage can amplify moves. As Bitcoin broke key levels, automated liquidations added further selling pressure, creating a cascade that deepened the drop. Trading volume rose sharply during the decline, while open interest in futures remained elevated heading into the session.
Spot Bitcoin exchange-traded funds had recorded modest net inflows the previous day, yet that support was insufficient to offset the broader risk-off sentiment.
Market participants noted the speed of the reversal from Wednesday’s recovery, which had briefly lifted Bitcoin back above $80,000 after earlier weakness.
At the time of the initial reports, Bitcoin traded near $76,900–$77,000 on major platforms, with charts showing a steep series of red candlesticks from the prior session highs.
Analysts pointed to the combination of equity-market weakness and leveraged positioning as the primary drivers rather than any single cryptocurrency-specific development.
Wintermute, one of the world’s largest cryptocurrency market-making and algorithmic trading firms, noted that Bitcoin’s significant reversal, may have been driven more by temporary optimism than a meaningful improvement in market underlying conditions.
The crypto firm noted that the rally reflected a combination of relief following the recent Binance hack, enthusiasm surrounding the election results, optimism about a potential slowdown in AI spending and falling oil prices. However, those factors proved short-lived as broader macroeconomic pressures persisted.
Economist and investor Peter Schiff sharply criticized the initial stock market response to the 2026 midterm elections, arguing that Wednesday’s rally was irrational while Thursday’s sell-off correctly reflected the implications of Democratic control of Congress.
In a post on X, Schiff wrote,
“Yesterday’s stock market rally in the face of the Democratic landslide made no sense. In contrast, today’s sell-off makes perfect sense. Expect more days like today.”
Schiff, a longtime critic of deficit spending, monetary policy, and what he views as excessive government intervention regardless of party, has repeatedly warned of elevated valuations, rising inflation pressures, and structural economic weaknesses in the lead-up to the elections.
His latest comments reinforce a view that the Democratic victory removes any remaining restraint on expansionary fiscal and regulatory policies.
Investors will be watching closely for signals on tax policy, AI and technology regulation, energy and data-center rules, and overall fiscal trajectory in the coming weeks and months as the new Congress takes shape. Schiff’s forecast points to continued market pressure if those policies materialize as he anticipates.
The episode underscored the continued correlation between Bitcoin and broader risk assets, particularly technology stocks, during periods of heightened volatility.
Market Outlook
Bitcoin’s near-term outlook remains uncertain as the cryptocurrency struggles to regain the $80,000 psychological threshold.
The decline below $77,000 has weakened market sentiment, while the scale of leveraged liquidations suggests that traders remain vulnerable to further volatility.
Market participants will be watching the $75,000–$76,000 region as an important support zone. A sustained break below this area could expose Bitcoin to deeper losses, particularly if technology stocks and other risk assets continue to weaken.
Conversely, a recovery above $77,000, followed by a sustained move back above $80,000, could signal renewed buying interest and help restore confidence.
The behaviour of institutional investors will also be important. Although recent spot Bitcoin ETF inflows provided some support, sustained inflows may be necessary to counter persistent selling pressure.
Meanwhile, developments in U.S. economic policy, technology regulation, inflation expectations, and equity markets could influence the direction of digital assets.