Bitcoin is once again under strong pressure from sellers. On Thursday, November 5, the bitcoin price fell below 76,000. dollars, erasing the gains from the previous day. The decline also included Ethereum, Solana and other major cryptocurrencies, and its rapidity coincided with the sale of shares of American technology companies.
Just a dozen or so hours earlier, Bitcoin cost over 80.8 thousand. USD. According to CoinGecko data, during Thursday’s session its price dropped to approximately PLN 75.6 thousand. USD, and before 6:00 p.m. Polish time it remained close to 76.5 thousand. USD. This meant a decline of about 5% during the day.
Some altcoins were hit even harder. Ethereum fell by about 6.8%, to USD 2,270, while Solana lost over 6%, falling to around USD 90. The total capitalization of the cryptocurrency market was approximately $2.72 trillion, which was 2.45% less than a day earlier.
Why is Bitcoin falling? The sell-off has started on Wall Street
Thursday’s declines in cryptocurrencies coincided with a sharp decline in American stocks, especially companies related to artificial intelligence. The Nasdaq Composite Index lost about 5% during the session, and the S&P 500 lost over 3%. According to the Associated Press, Nvidia’s shares fell by over 8%, while AMD’s dropped by nearly 16%.
Investors are taking an increasingly closer look at the costs of developing AI infrastructure and the prospects for return on huge outlays on data centers. Additional uncertainty was brought by Tuesday’s elections to the US Congress, after which concerns about possible restrictions on the construction of new facilities of this type increased.
Bitcoin reacted to these events similarly to other assets considered risky. However, the coincidence of declines alone does not allow us to conclude that the sell-off in technology stocks was the only reason for the sell-off in cryptocurrencies.
The situation was made worse by the liquidation of leveraged positions. As CoinDesk reported, citing CoinGlass, within 24 hours cryptocurrency exchanges liquidated derivative positions with a total value exceeding one billion dollars. Most of them were long positions, i.e. bets on further price increases.
This mechanism may accelerate declines. When the price falls sharply, exchanges automatically close out under-collateralized leveraged positions, creating additional selling pressure. It is worth remembering that the nominal value of liquidated contracts is not equivalent to the amount of money actually lost by investors.
What’s next for Bitcoin? The market is observing the level of 75,000. USD
Thursday’s sell-off virtually offset Wednesday’s rebound, during which Bitcoin again exceeded 80,000. dollars. What may be particularly worrying for buyers is the speed with which the market gave up its previous gains. Compared to its historical high of $126,080, Bitcoin is currently approximately 39% cheaper.
However, it is worth paying attention to the situation of American ETF funds. According to Farside Investors, they recorded a total of $74.6 million in net inflows on November 4, ending a three-session streak of outflows. However, the data was ambiguous: Fidelity’s FBTC fund attracted USD 236.7 million, while a net outflow from IBIT BlackRock was USD 201.2 million. This does not mean that BlackRock itself has decided to sell Bitcoins from its own investment portfolio.
The closest significant reference point remains the area of 75-76 thousand. USD, in which the exchange rate stopped the recent declines. Breaking it would increase the risk of further depreciation, while returning above 80,000. USD would be the first sign of buyers regaining strength. Both scenarios remain open, especially since trading on Wall Street is still ongoing and data on flows into ETFs for November 5 is not yet complete.
