Bitcoin Drops 6% to 7-Week Low as US Stocks Give Up Election Gains

Bitcoin slipped below $76,000 on Thursday, extending a sharp risk-off turn after a midterm election-driven equity rally began to unwind. BTC/USD traded as low as $75,463 on Bitstamp, its weakest level since Sept. 16, as sell pressure spread across stocks—especially technology.

The move also put a widely watched technical reference under pressure: during the sell-off, BTC/USD briefly dipped below its 50-week simple moving average (SMA) near $75,733. With liquidation activity rising alongside the drop, traders are now focused on whether that long-term trend line can hold.

Key takeaways

• BTC fell more than 6% to $75,463 on Bitstamp, the lowest since Sept. 16, as broader markets sold off.
• Equities reversed post-midterm gains, with the Nasdaq Composite down 4.2% to its lowest level since July 29.
• BTC/USD briefly moved below the 50-week SMA around $75,733, increasing the risk to the level’s role as support.
• CoinGlass data shows heightened leverage stress: nearly $500 million liquidated in the first hour, with 24-hour liquidations approaching $850 million at the time of writing.

Risk assets fade after election-driven momentum

Earlier in the week, markets had rallied quickly following a Democrat sweep of the US House of Representatives and the Senate. On Thursday, that momentum failed to hold: equities sold off as traders rotated out of tech exposure.

According to TradingView data cited by the report, BTC/USD shed more than 6% to reach $75,463 on Bitstamp. In parallel, the S&P 500 fell 2.7%, while the Nasdaq Composite dropped more than 4% and reached its lowest point since July 29.

Energy markets also moved higher amid uncertainty tied to geopolitical headlines. WTI crude reportedly returned above $90 per barrel, while Brent climbed about 2.5% toward $97, reinforcing a broader “risk volatility” backdrop for global portfolios.

Portfolio manager Jordan Watson of Tandem Investment Advisors warned that investors should be prepared for additional swings as markets digest the election results and potential policy implications. Speaking to CNBC, Watson cautioned against treating the post-election equity rise as an “all-clear signal,” framing the market as more prone to volatility than stability.

What tech weakness could mean for crypto

Earlier coverage from Cointelegraph had flagged concerns that Democrat policy priorities could be less favorable to parts of the AI ecosystem—an angle that could affect expectations for capital expenditure plans. That line of thinking ties crypto’s recent sensitivity to wider risk sentiment to the health of growth-focused sectors, particularly when markets are pricing changes in regulation or government spending.

Economist Mohamed El-Erian questioned whether the shift in US political trajectory would necessarily translate into lasting damage to tech. In a blog post, he asked whether the Congress change would “actually slow tech down,” and if so whether the rest of the economy could thrive without what he described as the “shield of tech earnings and spending.” El-Erian characterized Thursday’s tech-stock weakness as “not surprising,” suggesting the market may be recalibrating rather than facing an immediate, irreversible structural break.

For crypto investors, the practical takeaway is that Bitcoin’s correlation to macro-driven risk appetite remains visible when equities—particularly the Nasdaq—snap lower. In those moments, even crypto-specific narratives can take a back seat to positioning and liquidity conditions.

The 50-week SMA becomes a stress test

On the technical side, the timing of Thursday’s decline matters. BTC/USD was approaching the lower end of its one-month trading range around $76,000, and the move put the 50-week SMA—currently cited at $75,733—into focus.

When a major long-term average like the 50-week SMA is briefly lost, it often shifts trader behavior: new buyers may hesitate for confirmation, while short-term momentum traders may interpret the break as justification to push risk lower. In this case, the report notes that BTC/USD briefly fell below the 50-week SMA during the sell-off, raising the question of whether the level can quickly reclaim its role as support.

Crypto trader Rekt Capital highlighted that Bitcoin had shown similar behavior in May—when a stretch of rangebound trading around $80,000 later gave way to a breakdown and ultimately new macro lows around $57,000 by late June. The comparison suggests traders are watching not just the current day’s move, but whether the market is re-entering a pattern that historically preceded deeper drawdowns.

Liquidations signal leverage pressure, not just spot selling

Beyond price levels, the intensity of the move is reflected in derivatives stress. CoinGlass data cited in the report indicates that crypto markets liquidated nearly $500 million in positioning in the first hour of the US trading session. At the time of writing, 24-hour total liquidations were approaching $850 million.

High liquidation totals typically indicate that the sell-off is being amplified by forced position closures—meaning the downside can accelerate faster than spot demand can absorb. That doesn’t guarantee a reversal, but it does change the character of the drawdown: traders are not only selling, they are also being compelled out of leveraged trades.

As a result, the next question for market participants is whether liquidations start to cool while BTC holds near key long-term levels like the 50-week SMA, or whether the cascade continues and pushes price deeper into the lower range.

Heading into the next sessions, traders should watch whether BTC can reclaim and stabilize above the 50-week SMA near $75,733 and whether liquidation flows begin to diminish—signals that would suggest the risk-off move is losing momentum. At the same time, the direction of US tech stocks and broader macro volatility will likely remain the dominant driver until a clearer market narrative re-emerges.