Bitcoin and ether touched their lowest levels in more than two months in late Sunday trade. Investors fretted that a Democratic Party-controlled US Congress will toughen crypto regulation. A separate report tied the earlier slide to a tech and AI stock selloff and $1 billion in liquidations.
Bitcoin fell by more than 2% to $73,708 in late Sunday trade, its lowest price since August. Investors fretted that a Democratic Party-controlled US Congress will toughen regulation on the asset class, Reuters reported.
Ether fell about 5% to $2,223, also the lowest since August.
Heist and midterms rattle crypto markets
Crypto markets have been shaken in recent sessions by a $6 billion heist at Binance, the world's biggest exchange. The election of high-profile critics in last week's US midterms added to the pressure, according to Reuters.
Leveraged longs get wiped out
Crypto Briefing reported that more than $1 billion in leveraged positions were liquidated as Bitcoin, Ethereum, XRP and Solana fell below key price levels. Long positions accounted for approximately $930 million of the total, or 88.2%.
A sharp selloff in US tech and AI stocks dragged crypto lower, the outlet said. The Nasdaq Composite fell 5.5% amid turmoil across AI and chip stocks, and hefty Bitcoin ETF outflows coincided with the drop.
Bitcoin hit an intraday low of $74,780.91 on November 6, according to the same report. Nearly 211,000 traders were hit by the liquidations, with most of the damage landing on major exchanges like Binance. Using leverage magnifies such moves, because a forced closure of a long position means selling, which pushes prices lower.
The Fear & Greed Index slipped into "fear" territory, Crypto Briefing said.
Sources: Reuters via Investing.com, Crypto Briefing
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