Bitcoin fell more than 5% on Thursday to trade near $76,000 as a Nasdaq-led selloff in chip and AI stocks deepened into a correction. More than $1 billion in leveraged crypto bets were wiped out, and traders now look to Friday's jobs report.
Bitcoin traded near $76,000 on Thursday afternoon, down more than 5% on the day, as the selloff in chip and AI stocks forced out more than $1 billion in leveraged bets, according to Bitcoin Magazine Pro data.
The drop erased overnight gains above $80,000. Bitcoin briefly tested support near $75,400 before stabilizing just under $76,000, and it is on track for its biggest single-day slide since June.
Nasdaq's correction pulls crypto lower
Wall Street set the tone. The Nasdaq Composite fell about 5% and dropped into correction territory, more than 10% below its record close from last month, as CNBC reported. The S&P 500 lost roughly 4%, and the Dow shed more than 1,600 points.
Semiconductors led the decline. The Philadelphia Semiconductor Index sank about 11%, while Nvidia and Broadcom each fell around 9% and Tesla dropped about 11%.
Investors are pricing in a slower AI data-center buildout under a Democratic Congress, according to Bitcoin Magazine. Bitcoin has moved with that AI-heavy complex for most of the year.
Leverage flush grows past $1 billion
Forced selling kept pressure on bitcoin into the afternoon. Roughly $1.08 billion in leveraged crypto positions were liquidated over 24 hours, including about $954 million in long bets, as futures markets unwound positions built during Wednesday's short squeeze.
Ether fell below $2,300. Strategy, Coinbase and Circle each fell more than 10%, and bitcoin miners dropped as much as 20%.
Jobs report and CPI come next
The next test is Friday's October jobs report, then October CPI on Nov. 10 and the Fed's Dec. 9 decision.
Traders are watching whether bitcoin can hold the mid-$75,000 area that served as support on election night and several times since August. A clean break would leave bitcoin with room to run lower and put the September low back in view.
Source: Bitcoin Magazine
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