Bitcoin gave back Wednesday's post-election recovery on Thursday as a sell-off in U.S. technology stocks spread into crypto. Leveraged positions and spot ETF flows added to the pressure, and the $75,000 to $76,000 region is now the level to watch.
Bitcoin dropped 5.65% to $75,880.60 on Thursday, as a broad sell-off across Wall Street spilled into digital assets. Ethereum tumbled 7.80% to $2,233.79, and Solana declined 6.22% to $89.55.
Investors retreated from riskier assets and erased much of Wednesday's post-election recovery.
Tech sell-off drives the drop
Risk appetite deteriorated sharply across global financial markets. U.S. technology stocks led Wall Street lower as investors grew concerned about elevated valuations and the sustainability of massive artificial intelligence infrastructure investments. The Nasdaq fell 5.5%, and that intensified selling across speculative assets.
Meanwhile, leverage amplified the downturn. As Bitcoin and other cryptocurrencies declined, liquidations created additional selling pressure and accelerated losses across the market.
ETF outflows and funds fall
Spot Bitcoin ETFs also faced selling pressure. They recorded more than $1.1 billion in net outflows over three consecutive trading sessions before posting a modest inflow on Wednesday.
However, Thursday's sell-off raises concerns that institutional withdrawals could resume. The iShares Bitcoin Trust ETF fell 5.07%, the Fidelity Wise Origin Bitcoin Fund fell 4.93%, and the iShares Ethereum Trust ETF fell 7.25%.
The $75,000 to $76,000 region in focus
Bitcoin's ability to defend the $75,000 to $76,000 region is becoming increasingly important. Bulls will want to see this level held, or Bitcoin risks a deeper correction.
The broader altcoin market faces a similar test. Ethereum, XRP and Solana have surrendered much of their earlier gains, and investors are watching whether key support levels can hold.
Source: The Motley Fool
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